Business Daily from THE HINDU group of publications
Tuesday, Oct 14, 2008
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Business Daily from THE HINDU group of publications Tuesday, Oct 14, 2008 ePaper | Mobile/PDA Version | Audio | Blogs |
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Info-Tech
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Telecommunications Industry & Economy - Industry Associations Web Extras - Outlook ‘Revenue separation for 3G easily do-able’ Our Bureau New Delhi, Oct. 13 The Cellular Operators Association of India on Monday said that separating revenues from 3G and 2G services was a simple exercise and the issue was being blown out of proportion by vested parties to derail the 3G auction. Mr. T. V. Ramachandran, Director General, COAI, said that there were several precedents to establish that segregation of 2G and 3G revenues was do-able. “The Government has decided, under its dual allocation policy, that CDMA and GSM revenue streams would be reported separately for payment of license fee and spectrum usage charges. 3G, which was also known as WCDMA, could similarly be easily distinguished from GSM and therefore if GSM and CDMA revenues could be separately identified and reported, it would be as simple and easy to segregate GSM and WCDMA revenues,” Mr Ramachandran said. The statement comes after reports said that COAI was finding it difficult to cite examples of other countries which had successfully implemented a scheme to separate revenues. COAI pointed out that other countries including UK and Hong Kong have implemented the segregation approach.
“Since the 2G and the 3G base stations were clearly different and distinctly identifiable in the network, the segregation could be done either on the basis of the traffic generated by the 2G and 3G base stations respectively. Alternatively, the same information could be extracted from the billing system,” COAI said in a release. Mr Ramachandran said that segregation of 3G revenues would push operators to expeditiously enhance their 3G footprint (on account of the lower usage charges for 3G services) thus benefiting the consumers and the country in terms of broadband availability. He also stated that since the 3G spectrum was being acquired through an open bidding process, the current market value of the 3G spectrum would be correctly reflected in the final bid price and thus also, it was only the administrative charges for spectrum usage that were required to be recovered through the annual revenue share levy. “The entire confusion is being created by certain vested interests that want to delay and derail the 3G auction process,” COAI said. GSM players want 3G auction to be held on schedule More Stories on : Telecommunications | Industry Associations | Outlook
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