Telecom operator groups take spectrum rivalry to a new high in India
Telecom tribunal's ruling favors Reliance Communications
The ongoing spat over spectrum allocation between rival telecom operator groups in India has taken a new turn with the Telecom Disputes Settlement & Appellate Tribunal (TDSAT) refusing to extend a month-old ban on issuance of new licenses and allocation of spectrum as sought by GSM operators, and ruling on Wednesday, Dec. 12, that the government should issue an initial allocation of spectrum to new players "right away."
The battle between GSM and CDMA operators over the government's spectrum policy has been going on for a long time.
The CDMA operators led by Reliance Communications and the Tata Group have been seeking Prime Minister Manmohan Singh's intervention against the advantages given to existing GSM players. The other camp led by Bharti Airtel's Sunil Mittal has lambasted the CDMA players for spreading false information about them including about hoarding of spectrum by GSM companies.
Last month, the GSM operators lobby, the Cellular Operators’ Association of India (COAI) had moved TDSAT against the government’s move to allow the use of dual technology. The GSM operators received a shot in the arm when the Union Finance Ministry wrote to the Department of Telecommunications (DoT) asking it to "stay" the implementation of the grant of crossover licenses for CDMA operators to commence GSM operations.
The Prime Minister, Dr. Manmohan Singh, has also said that the spectrum policy should not lose sight of the revenue earning potential to the Government.
"The policy regime for making spectrum available should be transparent and equitable. It should not create entry barriers to the new comers or barriers to the continued growth of this important sector," Singh said.
"Spectrum availability can be a constraint for the growth of the sector for the future ... All technology options should be explored to maximise its utilisation," he said.
The prime minister’s remark was welcomed by the GSM operators and as such some of them, viz. Bharti Airtel, Idea Cellular and Stel had offered to pay for additional spectrum in the range of Rs.1650-6000 crore. Their logic? Rival Reliance had paid Rs.1651 crore on Oct. 19 to the DoT for permission to start pan-India GSM-based services and had received the license for the same.
However the Communications and IT Ministry has maintained that though auction was a fair and transparent way to allocate spectrum, it would create legal barriers for new players.
Sources in the Communications and IT Ministry said that even the telecom regulator and the telecom commission had recommended allowing crossover technology. They also said that revenues would be generated through auction of 3G spectrum and by issuing license to new players and therefore the concerns raised by the Finance Ministry were being addressed.
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