GSM operators offer counter-proposal

Key operators of GSM mobile services are working on a counter-proposal on spectrum allocation that would include accepting a 25 per cent increase, at the most, in minimum subscriber numbers for operators to qualify for additional access to the radio frequencies that enable mobile communications.

GSM players account for the bulk of mobile services in the country and have been locked in controversy with the government and operators of rival CDMA mobile technology services for spectrum allocation.

On Monday, they rejected a proposal by the department of telecommunications (DoT) that capped spectrum allocations describing it as "one-sided".

The controversy began when the Telecom Regulatory Authority of India (Trai) and DoT's technical advisory board raised the bar on minimum subscriber norms for operators to qualify for additional spectrum to more than 100 per cent. 
 

CALL WAITING: THE RIVAL PROPOSALS
THE DoT OFFER	WHAT GSM PLAYERS WANT
* Accept subscriber base criterion of Trai	* Trai recommendation not acceptable, but a 25% increase from current base acceptable
* Initial spectrum of 4.4 MHz	* Initial spectrum of 6.2 MHz
* Maximum spectrum of 10 MHz, beyond that additional charges based on Trai	* No issue, they can even auction, but 12.2 MHz for metros
* Dual spectrum to stay, GSM and CDMA services to be treated as separate revenue stream for calculating revenue share	* Should be put together for calculating revenue share, separate revenue stream for calculating revenue share

The GSM operators' counter-proposal suggests that the government should, in return, assure players spectrum up to 10 MHz (from the current 15 MHz) and 12.2 MHz in the metros.

However, GSM operators said they are willing to consider any route for accessing spectrum beyond 10 MHz "" either through the auction route or by paying additional charges as recommended by Trai.

The GSM operators are also willing to accept the government's decision on permitting dual technology (GSM and CDMA services) on the same licence. This was permitted only in October and RCom has been the principal beneficiary.