The Hindu Business Line : Existing operators not happy with 3G auction

New Delhi, Nov. 13 Incumbent mobile operators, both GSM and CDMA, are not happy with the Government’s decision to auction spectrum for third generation (3G) mobile services. While the GSM camp represented by the Cellular Operators Association of India (COAI) came out strongly opposing the auction, the CDMA operators are also now slowly joining ranks.

The existing operators are worried that they will have to fight it out with global majors to get a berth on the 3G bandwagon, which could make it an expensive proposition.

COAI said the Government’s decision to open up auction for new players suffered from “serious legal infirmities.”

Violates TRAI rules

Mr T.V. Ramachandran, Director-General, COAI, stated that the Government policy was at direct variation with the recommendations of TRAI which had recommended that 3G spectrum be given only to existing operators in slots of 5MHz each. “It is bizarre that the Government was proposing as many as 8-9 operators in every service area in the case of 2G, while seeking to introduce a near monopoly market/regime in 3G,” he said.

He also expressed concern at the reports that the bidding will only be done for 2.1GHz spectrum and that the CDMA operators would be allowed to acquire a 3G carrier in 800 MHz at a fixed price determined through the 3G auction.

He stated that this again was a discriminatory approach being adopted by the Government, by choosing different pricing strategies for GSM and CDMA players.

The CDMA operators chose to remain silent officially but industry sources said that they were considering approaching the Communications Ministry seeking a review of the policy. They are unhappy that they have been given only 1.25 Mhz band for a single operator.