Financial Daily from THE HINDU group of publications
Thursday, Dec 02, 2004
Financial Daily from THE HINDU group of publications Thursday, Dec 02, 2004 |
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Info-Tech
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Telecommunications Spectrum policy to address 1900 Mhz band allocation issue Our Bureau
New Delhi , Dec. 1 THE Telecom Regulatory Authority of India, on Wednesday, said that the spectrum policy to be announced this month will address the controversy between GSM and CDMA operators over allocation of radio frequency for third generation services (3G) services in the 1900 Mhz band. Mr Pradip Baijal, Chairman, TRAI, said, "The policy on 3G has to be evolved with caution while at the same time building flexibility in allocation of frequency and making it affordable." Addressing a seminar on ``3G Services and Opportunities for India'', organised by FICCI, Mr Baijal said the policies would have to be dictated by standards laid down by the International Telecommunications Union (IT) and the availability of equipment. Both CDMA and GSM operators have been clamouring for the 1900 Mhz spectrum. While GSM operators say that allowing CDMA services in 1900 Mhz would create interference in their cellular network, the CDMA players say that there is no equipment available for any other frequency. GSM operators are also opposing the entry of CDMA players in the 1900 Mhz on grounds that internationally the band has been reserved for third generation services. On the other hand, CDMA operators highlight the fact that globally there are only two other countries where CDMA networks are running on frequencies other than the 1900 Mhz band. The telecom regulator today reiterated that it will reduce access deficit charges (ADC) and the revised guideline would be issued next week. ADC is a levy imposed on private operators to fund rural telephones offered by the state-run Bharat Sanchar Nigam Ltd. The reduction would result in lower telecom tariffs. Reacting to TRAI's comments, Airtel said that it would pass on the benefits to its customers if the deficit charges are brought down. ``Whenever there has been a cut in charges, we have passed on the benefit to the customers. As the TRAI chief today said ADC will be cut, we will also reduce tariff rates to pass on the benefit to Airtel users,'' said Mr Rajan Bharti Mittal, Joint Managing Director, Bharti Tele-Ventures.
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