TDSAT upholds dual-spectrum policy

In a major relief to CDMA operators like Reliance Communications and Tata Teleservices, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) today upheld the dual spectrum allocation policy of the government. Under the policy, CDMA operators were given GSM spectrum within the same licence.

The GSM operators had challenged the government’s decision to allow dual technology to these players and had demanded a stay on the policy. “We do not find any ground to level malafide intention on the part of the Department of Telecommunications (DoT) and accordingly hold that the issue of early completion of formalities is not a matter that would require intervention at our level,” the tribunal said.

The Cellular Operators’ Association of India (COAI) had appealed to the TDSAT after the DoT decision on October 18, 2007 to amend the telecom licence, allowing CDMA players to enter the GSM mobile space. COAI had also raised objections over the way in which Communications Minister A Raja had implemented the decision.

UNDER-UTILISATION OF SPECTRUM
The tribunal also cracked the whip on the DoT, as well as state-owned telecom operators Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL) for under-utilisation of the spectrum allotted to them. “Allocation of additional spectrum to BSNL and MTNL on the basis of the criteria laid down is a discrimination against the private GSM operators. We accordingly direct the DoT to immediately review the subscriber base of these PSUs in all the circles and withdraw the spectrum that is beyond the criteria laid down by the DoT,” said TDSAT. The government had given the state-owned corporations additional spectrum up to 10 MHZ, which was not linked to any subscriber base.

RIGHT TO HOLD SPECTRUM
In another setback to the GSM operators, the tribunal rejected their contention that under the licence condition and National Telecom Policy of 1999, they had the right to hold spectrum up to 15 MHz. TDSAT said, “We hold that there is nothing in either the NTP-99 document, the licence conditions or the orders to support the contention of the petitioners that they have a vested right up to 15 MHz. We hold that the petitioners do not have any vested right to receive GSM spectrum beyond 6.2 Mhz.”

TRANSPARENCY AT TRAI
TDSAT also slammed the telecom regulator for not exhibiting transparency and fairness while giving its recommendations on the subject of dual-technology and allocation of extra spectrum.

“Trai did not exhibit the required degree of care and has avoidably given the impression that the concept of technology neutrality was something new.”

“We hold that in arriving at the subscriber-linked criteria, Trai failed to observe the principle of transparency,” added the tribunal.

However, the DoT was given a clean-chit on the issue as the tribunal pointed out that the department was not at fault in implementing Trai’s recommendation.