DoT weighs auction for 2G spectrum

Also looks at creating a level-playing field for GSM and CDMA players.

The Department of Telecommunications (DoT) is considering the feasibility of offering fresh spectrum for second-generation (2G) services "" the currently available mobile technology "" to mobile operators only through auctions, in place of the current subscriber-linked allocation.

DoT is also looking at the possibility of creating a level-playing field for operators of the two rival mobile technologies "" CDMA and GSM "" in allocating fresh spectrum.

Under the current policy, mobile operators are committed a certain chunk of spectrum when they take a unified access service licence (UASL)"" each GSM operator gets up to 6.25 MHz and each CDMA operator up to 5 MHz.

Additional spectrum allocation is made on the basis of the operator's subscriber base. Once the subscriber base reaches a certain number, the operator can apply for additional spectrum. For additional spectrum, the mobile operator pays 1 per cent more in terms of revenue share to the government.

The logic for a change to the auction model is that it is a more transparent system of spectrum allocation and will earn the government more revenue.

DoT is also working out the details of acquiring 20 MHz of spectrum under the 1800 band (from the defence services) for 2G operations and how it will be allocated to operators. It also has to allocate another 5 MHz, which is available in the 800 band, to CDMA operators.

Further, DoT has reasoned that since CDMA and GSM operators have paid the same licence fee, there should not be any difference in the spectrum allocated to them.

At the moment, allocation of additional spectrum is based on a 1:2 ratio; while each CDMA operator gets 1.25 MHz, each GSM operator gets 2.5 MHz. The allocation was based on the premise that CDMA technology is more efficient than GSM and therefore requires less spectrum.

DoT has also been pushing for open auction of 3G spectrum, which allows for faster mobile access, which would not be restricted to existing operators.

While this would mean opening the 3G services sector to other operators, existing operators say there can be competition only after their legitimate spectrum need for 3G services is met.

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