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Thomas K. Thomas

New Delhi, Nov. 4 The battle between the existing GSM operators and the Communication Ministry over spectrum allocation has now reached the Prime Minister, Dr Manmohan Singh’s Office. Following representations made by the GSM industry that the spectrum allocation policy was hurting their future growth, the PMO has asked Communication Ministry to explain why the option of auctioning radio waves had been rejected

Senior DoT officials confirmed receiving two letters from the PMO, which had also sought clarity on the Communications Ministry’s decision to allow dual technology to CDMA players including Reliance Communication. They also said that the Communications Minister, Mr A. Raja, had already responded to the PMO’s letter.

DoT sources said that the Minister has informed the PM that since spectrum was given to the existing players free of charge, it would have been unfair and discriminatory to auction spectrum to new applicants as it would disturb the level playing field.

The Minister has also told the PM that CDMA players who want to offer GSM services would be given spectrum only after applications of the existing GSM players for radio waves are cleared. Sources pointed out that GSM operators including Aircel, Idea Cellular and Vodafone could be given spectrum first as their applications have been pending for more than a year.

The PM’s intervention assumes significance given the sharp divisions within the industry. On the one side is the Cellular Operators Association of India which is demanding that the spectrum be first made available to the existing GSM operators, including Bharti Airtel. On the other side is Reliance Communication which has made elaborate plans to roll out GSM services even as it strengthens its pan-India CDMA operations.

The third angle to the wrangle is provided by the 46 companies including AT&T and Unitech which have recently applied for a new telecom licence.

More Stories on : Telecommunications | Regulatory Bodies & Rulings | Broadband

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Ministry defends move on spectrum in letter to PMO

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