The Hindu Business Line : CDMA players seek adequate spectrum to stay in business

RELIANCE Infocomm and Tata Teleservices have said that they will be forced out of business if the Government does not allocate fresh spectrum in the 1900 Mhz frequency band.

Mr S.C. Khanna, Secretary General, Association of Unified Telecom Service Providers of India, said: "If the Government decides to allocate frequency in any band other than the 1900 Mhz that would kill the CDMA operators."

He added: "The move will have drastic cost impact on the operators which will make them uncompetitive in the market."

Most equipment vendors such as Lucent and Nortel have already said that they do not have equipment for offering services in the 1800 Mhz frequency band, which is the alternative band being considered for CDMA players.

The vendors have said that even if equipment were made available in the 1800 Mhz band, it would be at a much higher cost as the hardware would have to be developed specifically for India.

CDMA operators' demands for frequency in the 1900 Mhz are being fiercely opposed by the GSM-based operators on grounds that the specific frequency band has been earmarked globally for 3G (third generation) services. GSM players hold that if CDMA operators are also accommodated in the 1900 Mhz band it would interfere with 3G deployment.

Mr P. James of the CDMA Development Group (CDG) said that the Government would do well to the norms laid out by the International Telecom Union (ITU) with regard to spectrum allocation. "In most markets, CDMA operators are using the 1900 Mhz. If India chooses to ignore the global practice then it would isolate the CDMA operators here, as they would not be able to offer roaming services."

Mr James said that the GSM lobby should not be complaining about allocating frequency in the 1900 Mhz frequency to CDMA players since the technology, which is being deployed by Reliance and Tata, was already 3G.

"CDMA 1X is a 3G technology. Therefore, we agree that the 1900 Mhz should be reserved for 3G services which will also include CDMA operators," Mr James said.

Earlier, the Cellular Operators Association of India had pushed their case through the GSM Association, which is the counterpart of the CDG in the global market.