Incumbent operators using CDMA spectrum may not be asked to liberalise their existing spectrum. The guideline for auctioning spectrum drafted by the Department of Telecom does not have any mention about the roadmap for liberalising CDMA spectrum.
Liberalising means operators will be allowed to offer any type of service using the spectrum. According to the DoT, the current regime specifies the technology to be used with each band of air frequency. For example, the 800 Mhz is used for CDMA-based mobile services, the 1800 Mhz band is for GSM services. Once the spectrum is liberalised, operators can offer 3G and 4G services also if they have minimum of 5 Mhz chunk. In the draft guidelines seen by Business Line , the DoT has clearly stated that existing operators in the 1800 Mhz band will be given the option to liberalise spectrum by paying market determined price, there is no mention about the 800 Mhz band.
This means that Reliance Communications and Tata Teleservices, the two incumbent CDMA players, will be able to continue to offer services without paying any additional fee.
Non-liberalisation of spectrum will not have any major impact on these two companies as they are already offering high speed data services on this frequency band.
Liberalising will not give them any additional gain and at the same time they would have had to pay market based price for the entire quantum of airwaves they own.
GSM PLAYERS
This could peeve the GSM players who have also been protesting against the entire concept of liberalisation.
According to the Cellular Operators of India, spectrum is already liberalised and therefore the excuse being used by the Government to beef up charges was flawed.
Meanwhile, the Department of Telecom seems to be finding it difficult to get a fix on the auctioneer. The Government has extended the deadline to apply to July 20.