The Hindu Business Line : Spectrum: DoT to meet mobile operators today

The contenders
Existing GSM operators want the available spectrum to be given to them first before new players are considered.
The second camp comprises those companies which have already acquired licences and are waiting for spectrum since December 2006.
The third camp consists of companies which were among the first to apply for a new licences over the last few months.
The fourth camp includes companies which are at the back of the queue for new licences.

Thomas K. Thomas

New Delhi, Nov 20 The Department of Telecom and existing mobile operators are expected to thrash out a compromise formula for allocating spectrum for 2G mobile services at a crucial meeting on Wednesday.

Mr Sunil Mittal, Chairman, Bharti Group; Mr Anil Ambani, Chairman, Reliance Communication; Mr Kumar Manglam Birla, Chairman, Idea Cellular; Mr Arun Sarin, Chairman, Vodafone Group; Dr B.K. Modi, Chairman, Spice Telecom; and Mr Anand Krishnan, Chairman, Maxis Group; have been invited for the meeting.

However with sharp differences between the various players on how spectrum should be allocated, the Government has a tough task on its hands in arriving at a solution. The key problem is that the Government has about 25 Mhz of spectrum to give immediately and there are more than 50 claimants.

Existing GSM operators led by Bharti Airtel, Vodafone Essar and Idea Cellular (owned by Aditya Birla Group) want available spectrum to be given to them first before new players are considered.

They have strongly opposed the Government’s decision to hike the eligibility criteria for existing players in terms of subscriber base and want some relaxation to be made in such a way that operators get at least 10 Mhz spectrum in all circles and 12.4 Mhz in metro areas. This camp is also opposed to the decision to allow dual technology to Reliance Communication, but may soften its stance if the Government agrees to give more spectrum to existing GSM players. RCom could also back down its claims to spectrum if its interests on dual technology are not opposed.

The second camp in the tangle comprises those companies which have already acquired licences and are waiting for spectrum since December 2006. This includes Spice and Aircel (owned by Maxis) . According to them, the Government is under obligation to give them spectrum based on the date of their application based on a first come first served policy.

The third camp comprises companies which were among the first to apply for new licences over the last few months. Though there are 46 such companies, players such as HFCL and Shyam Telecom were among the first to apply and benefit from the Government’s decision to award licences on a first come first served basis. This camp wants the Government to freeze spectrum for existing players at 6.2 Mhz and go ahead with the enhanced subscriber criteria for existing operators, which will put operators such as Bharti out of the reckoning for more spectrum.

The fourth camp comprises companies which are at the back of the queue for new licences. This group, with companies like AT&T and Videocon, want the Government to auction 2G mobile spectrum as otherwise they may be left out if the first come first served policy is followed.

The Ministry of Communication on the other hand has so far indicated that it was in favour of a solution that will bring in new players on a first come first served basis in the mobile sector even at the cost of existing GSM players. Other Cabinet ranked Ministers have however expressed concern at this stance forcing the Prime Minister’s Office to intervene.

Given the complexity of the problem, senior Government officials held a meeting late Tuesday evening to plan their strategy ahead of the crucial meeting.