Trai proposals discriminatory, says SSTL

Trai has reiterated its earlier recommendation favouring adoption of extended GSM band

Sistema Shyam Teleservices, which operates under MTS brand, today said that the recommendations of the Telecom regulatory Authority of India (Trai) was unfair and discriminatory, and will block the company’s future growth prospects in the country.

Meanwhile, the Department of Telecommunications (DoT) has, on October 18, written to the Prime Minister’s Office, informing that it has found adoption of extended GSM band, taking spectrum out of the existing 800-MHz CDMA band, is not technically feasible. DoT is awaiting clarifications from Trai on its recommendations on the same, and the matter will be forwarded to the Empowered Group of Ministers (EGoM) after Telecom Commission’s review.

Trai has, on Wednesday, reiterated its earlier recommendation favouring adoption of extended GSM band.

In his communication, the DoT secretary M F Farooqui has also noted that spectrum was not available in a contiguous manner in the 800-MHz band, and the Government has been trying to sort out the issue. Non-availability of contiguous spectrum may impact operations of any operator.

In a statement, a spokesperson at Sistema Shyam Teleservices said, “The recent Trai recommendations favour the incumbents running 2G networks. For Trai to suggest carving out E-GSM band from 800 MHz and open it for use for old GSM 2G networks clearly reflects this thinking.”

On Wednesday, Trai reiterated its view that there is a vast difference in the valuation between the opportunity cost of 800 MHz spectrum in the proposed EGSM band and the price at which it was sold in the last auction. “What must be considered is the opportunity value of that spectrum band using the most optimal technology. The Government should first fully explore the feasibility of adoption of EGSM band before reaching any hasty conclusion,” Trai noted.

“The said recommendations have effectively blocked SSTL’s future growth path in India both in terms of expanding within its existing nine circles and to other circles,” said the company.

“Sistema Shyam Teleservices has always demonstrated its willing and readiness to upgrade its CDMA network to the next generation (3G, LTE) network. Trai, however has persistently rejected all such proposals,” the spokesperson said.