Tribunal paves way for allotting fresh spectrum

The Telecom Disputes Settlement & Appellate Tribunal (TDSAT) today agreed to lift a voluntary ban imposed by the government against issuing fresh spectrum to operators.

On 12 November, the government had voluntarily agreed that it would not issue fresh spectrum to operators till the next hearing.

But the Solicitor General today pleaded that since the Cellular Operators Association of India (COAI), the GSM service provider's lobby, had decided to withdraw from the committee set up by the government for changing subscriber norms for additional allocation of spectrum, it was not bound by its statement imposing a voluntary ban.

The move paves the way for the government to issue GSM spectrum to Reliance Communications (14 circles), HFCL (in Punjab) and Shyam Telelink (in Rajasthan) under the cross-over technology policy that was challenged by the COAI. Under this policy existing operators can get both CDMA as well as GSM spectrum within the same licence.

TDSAT, which heard the case today, did not give a stay against the policy and fixed 9 January as the next date of hearing.

The tribunal, which also heard petitions from Tata Teleservices and Aircel today, directed the government to provide the two operators with start-up spectrum (in the case of Tatas even additional spectrum) without waiting the report of a committee set up by the Department of Telecom (DoT) to examine a change in the subscriber base criterion for issuing additional spectrum. The COAI has already withdrawn from the committee.

TDSAT's decision will help companies like Aircel (which is waiting for spectrum in 14 circles or service areas), Vodafone-Essar (six circles) and Idea Cellular (two circles). Their applications have been pending since December 2006.

It would also leave the doors open for the DoT to issue fresh licences to new applicants.

GSM companies said today's decision discriminates against them and they might consider appealing to the Supreme Court.