The Hindu Business Line : GSM operators join Tatas for first right to 3G band

Justifying claims
Existing operators facing acute shortage of radio frequency
Have the first right to use of 3G spectrum as and when it is made available for allotment
Priority for allocating scarce spectrum must first go to existing licensees

New Delhi May 13 The fight for third generation (3G) spectrum has intensified, with GSM operators joining CDMA rival Tata Teleservices in claiming first right to the 3G spectrum.

The Cellular Operators Association of India (COAI) has shot off a letter to the Department of Telecom (DoT) stating that since the existing operators are facing acute shortage of radio frequency, it would be unfair if spectrum for 3G were given to new players ahead of them.

The Tatas had earlier written to the Communication Ministry expressing similar concerns at allowing foreign players to bid for 3G spectrum.

The letters from the telecom industry have been triggered by a statement from the Communication and IT Minister, Mr Dayanidhi Maran, that new operators, including foreign ones, would be allowed to bid for 3G spectrum.

COAI letter

In a letter to the DoT on May 8, the COAI said: "The existing licensees have the first right to use of 3G spectrum as and when it is made available for allotment. The TRAI too, in its recommendations of September 2006, had stated that the priority for allocating scarce spectrum must first go to the existing licensees."

This is the first time in the last six years that the GSM operators have joined with the Tatas on any major issue.

The two sides have been fighting ever since the Government allowed CDMA technology to be used by operators.

However, with the threat of large foreign mobile majors looming large, the two sides have joined hands in asking the Government to review its policy.

As of now, only Vodafone and Singtel have some presence in India.

Others such as NTT and Deutsche Telecom may show interest in the 3G market if the Government goes ahead with its plans, which in turn can upset the business plans of the existing cellular operators. In the letter, the COAI stopped short of saying that any move to give spectrum to new players ahead of the existing operators would be legally challenged.

Violation of rights

"Depriving any licensee of this spectrum, whether directly or indirectly, would be a violation of their rights under licence. This would also violate principles of level playing field enshrined in the NTP-99."

The COAI has also said that the level playing field principle disallows preferential allotment of 3G spectrum to any single operator.

The Government had hinted that BSNL and MTNL might be given spectrum without bidding.

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