The Hindu Business Line : CDMA camp divided over spectrum allocation

The subscriber-linked spectrum allocation policy has divided the CDMA camp with Reliance Infocomm joining ranks with the GSM operators in supporting the Government decision.

At a meeting held by the Confederation of Indian Industry to discuss the controversial policy, the other CDMA operator, Tata Teleservices, vehemently opposed the move by the Department of Telecom (DoT) to allocate spectrum according to the number of subscribers.

Industry sources said that except for Tatas and the promoter of CDMA technology Qualcomm, the entire industry supported the subscriber-linked spectrum allocation policy. The others who have voiced their support for the policy during the meeting include Idea, Airtel and Hutch. Equipment vendors such as Nokia and Ericsson also supported the policy. State-owned public sector companies Bharat Sanchar Nigam Ltd and Mahanagar Telephone Nigam Ltd are also in favour of the move.

Sources said the majority who were present during the meeting took a view that though the subscriber-linked spectrum policy was not the ideal decision it was the best given the situation in India where spectrum allocation has not been done systematically over the years. The Tatas on the other hand took a position that operators would exaggerate their subscriber numbers to get additional spectrum.

Earlier, Mr Ratan Tata, Chairman, Tata Group, had sent letters to the Communications Ministry and the Prime Minister seeking a review of the policy. The controversy had risen after DoT announced a policy where operators had to get a minimum subscriber base before they could ask for more spectrum.

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