2G auction not valid, say GSM players

Cellular Operators Association of India (COAI), the association for GSM operators, has taken legal opinion which clearly states that the government cannot go in for auctioning of 2G spectrum and deprive them of additional spectrum.

As per the Unified Assess Service Licence (UASL), additional spectrum can be availed of by increasing the revenue share paid by operators to the government.

According to Clause 23.5 of the licence, the government will allocate frequency based on usage justification and availability. It further states that allocation of spectrum may be considered on case-by-case basis. The licence terms also clearly points out that detailed guidelines and allocation of spectrum and charges thereof will be separately issued from time-to-time.

Under the UASL, operators are allocated 4.4 MHz of spectrum, and for fresh spectrum, licence fee in the form of additional revenue share has to be paid. The additional charge currently is a 1 per cent increase in the revenue share payment for every new carrier given to an operator.

T V Ramachandran, secretary general of COAI, said, "Availability of additional spectrum is enshrined in the UASL agreement for which even an elaborate mechanism for payment, based on additional revenue share, has been worked out. The industry had withdrawn cases in the courts during the UASL migration on the condition that the government will give them additional spectrum which will be paid through revenue share. That policy cannot be overturned".

The COAI has sought legal opinion because of the government's supposed moves to auction additional 2G spectrum. There are also opinions in some quarters that the government has committed only to offer up to 6.2 MHz of spectrum under the UASL.