The Hindu Business Line : Tatas propose competitive bidding for 3G licence

In a new twist to the ongoing debate on 3G mobile services, Tata Teleservices has fired a fresh salvo by suggesting that the Government go for competitive bidding for giving licences if the spectrum was inadequate to accommodate all operators.

In a communication sent by the Tatas to the telecom regulator, it has also suggested that GSM-based operators should be asked to pay an entry fee for offering EDGE (Enhanced Data GSM Environment services) with retrospective effect in case CDMA operators are asked to pay a fee for offering EVDO (evolution data optimised) services using the 800 Mhz frequency.

Spectrum Allocation

The Tatas have said that in case the Government cannot find enough spectrum to allocate at least 5 Mhz to every operator, it should invite bids for the licence.

The company that agrees to pay the highest revenue share (as a percentage of their annual revenues) to the Government as the licence fee should be given the 3G spectrum.

As per the Tata proposal, only those operators who pay an entry fee of Rs 1,500 crore should be allowed to bid for the spectrum.

TRAI had earlier proposed to allocate 3G spectrum for CDMA operators in 800 Mhz and in 2.1 Ghz frequency.

The Tatas have told the telecom regulator that instead of 2.1 Ghz, CDMA operators should be given spectrum in the 1,900 Mhz band.

On the 800 Mhz frequency, the Tatas have said there should be level playing field with GSM players who are offering EDGE services at no extra fee.

They have said that either the Government should impose an entry fee for EDGE services, being offered by GSM operators, before asking CDMA operators to pay entry fee for using 800 Mhz or the spectrum should be given free of cost.

GSM operators have been offering EDGE based services for more than a year.

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