The Hindu Business Line : DoT’s new proposals fail to break spectrum deadlock

New Delhi, Dec. 3 The spectrum allocation issue continues to be in a deadlock with both GSM and CDMA based mobile operators rejecting the new set of proposals put forward by the Department of Telecom on Monday. This was the second meeting convened by the DoT Secretary to find a solution to the spectrum battle but the operators are so sharply divided that none of them was prepared to soften their known positions.

During the day-long meeting with the operators, DoT suggested that the Government was willing to allocate up to 10 Mhz spectrum for each GSM operator per circle but they would have to accept the subscriber-linked allocation norms prescribed by the Telecom Regulatory Authority of India.

Climbdown

This is a climbdown on the Government’s part because it was considering imposing the numbers suggested by the Telecom Engineering Centre, in which case none of the operators would have been entitled to more than 6.2 Mhz.

In return, DoT wanted the GSM operators to accept the Government’s decision on permitting dual technology to CDMA players including Reliance Communication. However, GSM operators have rejected the proposal on the grounds that they would not get any spectrum immediately even if TRAI norms were put in place.

They are also not happy with the 10 Mhz cap per operator as existing norms provide for up to 15 Mhz spectrum in each circle. “There is absolutely nothing new in what DoT has proposed. COAI has already gone to court against the TRAI norms so how can we accept it? The end of this battle is not in sight,” said a leading GSM operator after the meeting with DoT.

Bharti Airtel’s Chairman, Mr Sunil Mittal; Idea Cellular’s Managing Director, Mr Sanjeev Aga; and Vodafone Essar’s CEO, Mr Asim Ghosh; were among those who met the DoT Secretray on Monday. The GSM camp is expected to officially communicate their objections to the proposals to DoT on Tuesday.

CDMA operators MIFFED

The CDMA players on the other hand are peeved at the DoT’s proposal to put a cap on the quantum of spectrum allocated to them at 5 Mhz per operator. “We wanted equality with the GSM operators. Why should they be given 10 Mhz while we are given only 5 Mhz? As per their licence conditions, GSM operators are entitled to only 6.2 Mhz,” said a CDMA operator.

New applicants for licences, including HFCL and Shyam Telecom, have agreed to part of the proposals such as dual technology and allocation based on TRAI norms as an interim solution. However, they wanted DoT to specify as to when it would issue the letter of intent to new players.

With the operators not accepting DoT’s proposals, the controversy is now back to square one. The only non-legal recourse remaining is the panel set up by the Communication Minister, Mr A. Raja, to review the spectrum allocation norms. The panel has already met thrice and will meet again on December 5 and 6 in a last-ditch effort to find a solution to the wrangle.