Trai wants MTNL to quit spectrum

After seeking vacation of spectrum by non-telecom users in the country, the Telecom Regulatory Authority of India (Trai) now wants state-owned Mahanagar Telephone Nigam Ltd (MTNL) to relinquish three carriers of the total seven it has been allocated.

This follows a similar request by Trai, which had asked Bharti Telenet to surrender two carriers in Madhya Pradesh; Shyam Telesystems to vacate two carriers in Rajasthan and HFCL to relinqish 2 carriers in Punjab.

Trai, which had asked telecom companies with excess spectrum in 824-844 Mhz paired with 869-889 Mhz band, intends to make this available for 3G services in the country.

"Trai has sought vacation of three carriers allocated to MTNL in Mumbai and Delhi. The regulator has asked DoT to instruct its Wirelesss Planning Commission (WPC) to take necessary steps for an early vacation of the spectrum," sources in MTNL told Business Standard here today.

MTNL was earlier allocated three carriers each of 3.75 Mhz in Delhi and 4 carriers each of 5 Mhz of spectrum in Mumbai. The PSU, which operates only in these two metros, has 65,000 subscribers in Delhi and 73,000 users in Mumbai.

Trai wanted these spectrum to be vacated as it could be used for the 3G services and other advanced technology initiatives, while the industry was seeking the vacation of 1900 Mhz spectrum that is in possession of the Indian army.

Commenting on the growth trends of MTNL, the regulator said that it registering a decrease in subscriber base during the last one year in Delhi circle. The company had recorded a negative 11.73 per cent in the second quarter of 2006.

In Mumbai, the PSU had recorded erratic growth and small subscriber base, while it posted a negative growth of 10.80 per cent in the second quarter of this year.

Trai had also sought vacation of spectrum by non-telecom users like the Indian Oil Corporation (6 Mhz in Gujarat), Indian Railways in Kolkata and West Bengal (3 Mhz) and Rajasthan Atomic Power Station in Kota (2.6 Mhz).