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Our Bureau

New Delhi, Aug. 29 Existing GSM operators have expressed their concern and disappointment at the telecom regulators’ proposal to price radio frequency beyond 10 MHz.

The Cellular Operators Association of India (COAI) termed TRAI’s proposal as ‘arbitrary’ and ‘stringent’. The operators were also unhappy with the suggestion to increase the number of subscribers in the given spectrum. “While we appreciate the challenges relating to paucity of spectrum and the imperatives to ensure the most optimal and efficient utilisation of this resource, the triple whammy sought to be applied to the industry in terms of a significant tightening of the subscriber linked criteria, imposition of a steep one-time charge as also the enhanced spectrum usage charges for allocations beyond 10 MHz, is both incorrect and unfair and would add significantly to the cost of service and adversely impact the achievement of national telecom objectives,” said Mr T.V. Ramachandran, Director General, COAI.

According to industry estimates, operators such as Bharti Airtel and Vodafone Essar could end up paying Rs 30-40 crore more every year as a result of the higher spectrum charges for more than 10 MHz. These two already have more than 10 MHz in a few circles. COAI pointed out that the TRAI recommendations, which have proposed a tightening of subscriber linked criteria by more than four to five times, “was completely arbitrary and not backed by any scientific/technical logic.”

For example, a GSM operator in C circles needs only 4 lakh subscribers to qualify to get 8 MHz spectrum, at present. As per TRAI’s new recommendations, this has been increased to 20 lakh subscribers. Similarly, for CDMA operators in C circles, the existing subscriber criteria of 5 lakh for getting 5 MHz has been increased to 40 lakh.

COAI said that the suggestions on spectrum allocation should be put on hold until the committee set up by DoT to look into the efficient utilisation of spectrum gives its report.

More Stories on : Telecommunications | Industry Associations

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