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Vinson Kurian

Thiruvananthapuram , June 14

EXCLUSIVE ownership of wireless bandwidth in certain hands will lead to locking up of the spectrum to use by others who plan rollout of technologically efficient products.

It is also unfair to levy fresh costs for already allotted spectrum every time a service provider wants to use the same for introducing a product based on new technology, says Mr P. Abraham Paul, Managing Partner and Chief Telecom Consultant, Future Groups.

Speaking to Business Line on recent developments pertaining to launch of 3G services, he said exclusive ownership of the spectrum would bring about a situation in which it remains inaccessible to others even after the technology has become obsolete and products are discontinued with.

The case of the Defence still holding vast bandwidth in the Ku band to operate what are essentially obsolete technology products is a case in point, Mr Paul said.

Technologies are fast changing, dynamic and unpredictable. Though a non-duplicable in nature, the radio spectrum makes for an abundant naturally occurring resource.

The same bandwidth can be reused in terms of space and can be shared in terms of time.

With advancement of technology, frequencies in ranges of gigahertz and even higher denominations could be harnessed for more efficient communication needs.

"Even today, there is no difficulty in functionally allocating discrete bandwidth in the spectrum for products using different technologies," Mr Paul said.

3G not efficient: Looking strictly from the usage angle, WCDMA (Wideband Code Division Multiple Access)-based 3G technologies do not make for a `spectrum-efficient' concept.

The multi-media products from 3G need high bandwidth - the higher the bandwidth, the lower will be the coverage area. This will translate into raised network cost.

In effect, most of the high-end 3G products will be available only in isolated pockets at higher cost of service. The multi-technology user terminals are expensive and, combined with the fact that service areas are limited, only few will venture to spend extra to avail of the services.

This will only bring down the number of effective users.

Adding to spectrum costs and introducing an entry fee will strike at the very vitals of the business model the 3G businesses have sought to project.

A revenue sharing regime will be the best model suited for 3G services in the country, Mr Paul said.

New technologies enabling better business options will evolve faster than expected. Non-availability of spectrum should not be allowed to become the stumbling block in the path of new technology and growth in business.

"Therefore, the decision of the Telecom Regulatory Authority of India (TRAI) in going in for a revenue-share regime for 3G would be the best option available. Let's hope that the Department of Telecom (DoT) will endorse the view of TRAI on this."

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