The Hindu Business Line : Telecom players divided over WiMax spectrum pricing

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Telecom players divided over WiMax spectrum pricing

Govt should stick to tech neutral policy: COAI

Different strokes
COAI wants parity between the price for third generation mobile and WiMax to keep the playing field level.
RCom, Intel want want the spectrum for WiMax to be priced lower to make broadband services more affordable.

Thomas K. Thomas

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New Delhi, May 29 The telecom regulator’s move to review the spectrum pricing for wireless broadband services using technologies such as WiMax has divided the telecom industry.

While the GSM operator’s lobby Cellular Operators Association of India (COAI) has pushed for parity between the price for third generation mobile and WiMax to keep the playing field level, others — including Reliance Communication and Intel — want the spectrum for WiMax to be priced lower to make broadband services more affordable.

The outcome of this debate will have an impact on what consumers pay for wireless broadband services.

TRAI meeting

At a meeting called by the telecom regulator to discuss the issue, COAI insisted that since the Government is following a technology neutral policy, it should not create any favourable environment for any specific technology.

They said that since WiMax has been included as a third generation mobile technology by the global standards body ITU, there should not be any differentiation in its spectrum pricing compared to spectrum for 3G technologies. COAI is backed by companies such as Qualcomm, Ericsson, Nokia and even industry associations such as the CDMA Development Group.

These companies and industry bodies have a higher stake in existing 3G technologies such as WCDMA and EVDO. Their major concern is that a lower price for WiMax spectrum could make 3G services relatively more expensive.

RCom, Tata argument

However, companies such as RCom, Tata Teleservices and Intel argue that spectrum for wireless broadband access should be lower priced as it will be used only for providing data connectivity while 3G technologies have both data and voice capabilities.

The Association of Unified Telecom Service Providers of India said that while technologies such as WiMax will develop voice capabilities later on, the operators should not be asked to pay for something that may happen in the future.

They said that by keeping the spectrum charges lower, the Government will enable faster uptake of cheaper broadband services.

COAI argument

COAI countered this by saying that the Government may allocate Wi-Max spectrum for only data services to start with but later on may also include voice service.

“This is just like when CDMA technology was brought in as a fixed line telephone technology to keep the entry fee lower compared to cellular operators and then slowly CDMA operators were allowed to offer full mobile services. The Government should not differentiate between two technologies,” said a GSM operator.

While the telecom regulator had initially suggested differential pricing for 3G and broadband wireless spectrum, it has now sought to review this policy in the light of developments in the international market wherein WiMax has been recognised as a 3G technology.

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