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Info-Tech - Telecommunications
GSM plea on spectrum usage charge rejected

Thomas K. Thomas

New Delhi , Dec. 14

The Department of Telecom has rejected demands from the Cellular Operators Association of India to bring parity between the spectrum charges paid by CDMA-based operators and GSM operators. DoT has said that the spectrum charges levied is technology neutral and if one technology allows greater number of subscribers in a given amount of spectrum, it means it offers greater spectrum efficiency and should be encouraged.

COAI, which represents the interests of GSM operators in the country, had said that CDMA operators were paying less spectrum charges. "There is a severe anomaly in the spectrum usage charges paid by GSM and CDMA as on the same revenue base, the GSM operators have to pay double the usage charges of CDMA, which is unfair, unjust and inequitable," COAI had said in a letter to DoT.

COAI said that while GSM operators have to pay 5 per cent of the annual revenue as spectrum charges for 10 lakh subscribers, CDMA operators pay 2 per cent of the revenue for the same number of subscribers. "It is submitted that as the charges are levied on the basis of revenues earned by the operators, it is most unfair and unjust that equivalent revenues attract different charges in the hands of different operators," COAI had said.

DoT officials said that the level playing field was intact because while GSM operators were paying 4 per cent charges for 10 Mhz frequency for offering mobile services to 10 lakh subscribers, CDMA operators were getting 5 Mhz for the same number of users.

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GSM, CDMA players divided over TRAI's 3G ruling

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