The Hindu Business Line : Spectrum: Subscriber norm may be ‘ad hoc arrangement’

New Delhi, Nov. 19 The Department of Telecom has taken a view that the enhanced subscriber base criterion for spectrum allocation to existing players is only an ad hoc arrangement. This could be an indication that DoT may now be open to proposals from the existing operators in resolving the wrangle over spectrum allocation for 2G services. Highly placed Government officials told Business Line, “This is only an ad hoc arrangement to ensure that spectrum allocation is not stalled.”

The officials, however, ruled out the option of auctioning spectrum for 2G services as the Solicitor General of India is understood to have informally advised the Ministry of Communications against it as the government was under contractual obligation to allocate spectrum to those companies given licences in December 2006. Idea Cellular, Aircel, Spice and Vodafone Essar are among those which have already paid the licence fee for various circles and are awaiting spectrum to commence services.

The officials also said that contrary to the apprehensions of the existing players, there was no shortage of spectrum.

No shortage

“DoT has earmarked 100 Mhz for 2G mobile services. Even with the existing efficiency of spectrum usage, operators can easily provide services to about 750 million subscribers. It will take about 6 years before 2G spectrum gets saturated,” they said. DoT has called for an industry meeting on November 21 in a bid to arrive at a compromise on the spectrum allocation criteria.

One of the proposals mooted by the industry is to shelve the recommendations of the Telecom Regulatory Authority of India (TRAI) for existing players and set up a new expert committee. In the interim, DoT may reduce the subscriber base required by existing GSM operators for additional spectrum 50 per cent of what the TRAI had recommended provided they withdraw their opposition to allow dual technology to Reliance Communications.