Trai spectrum proposal progressive: RCom

Anil Ambani group firm Reliance Communications (RCom) today welcomed the Trai spectrum proposals saying they are consumer-centric, while Tata Teleservices (TTSL) said the recommendations on 2G spectrum have not addressed inequalities in spectrum allocation.

"Trai recommendations would lead to spectrum efficiency and rural penetration. Government would be able to release additional spectrum," Syed Safawi, CEO, wireless business, RCom said in a conference call.

He said incumbent operators will have to pay for the excess spectrum beyond 6.2 MHz which could go up to Rs 10,000 crore and they could face huge opex and capex costs due to this.

He said RCom, which offers both GSM- and CDMA-based services, does not have to pay much for the excess spectrum, which could be just 22 crore.

Tata Teleservices, however, said the recommendations of Trai on 2G spectrum have not brought in the level playing field and has not addressed the inequalities in spectrum allocation and issues of excess spectrum beyond 6.2 MHz.

Tata Teleservices has been waiting for 2G spectrum allocation in Delhi and many other key Indian cities for the last more than 30 months now, it said in a statement.

"The recommendations instead of recognising our status as a dual-technology UASL-holder, has rather pushed us further behind in the queue, as it now proposes to award the spectrum first to those players who already have 4.4 MHz to 6.2 MHz and then to those who have been waiting.

"The recommendations thus impacts TTSL adversely and makes our case of expecting minimum spectrum the worst in the industry," it said.