The Tata Group has applied for GSM spectrum in 20 circles across the country.The application was made today through Tata Teleservices, which has applied for spectrum in 18 circles and Tata Teleservices (Maharashtra) which runs CDMA services in Maharashtra and Mumbai.The Tata application comes close on the heels of the department of telecommunications (DoT) allowing dual usage of spectrum within the same licence.In simple terms, it means that existing operators like the Tatas who offer CDMA services can now be eligible for spectrum for GSM also under the same licence. Of course, they will have to pay the equivalent of a UASL licence per circle (pan-India GSM spectrum is available for around Rs 1,680 crore) to be eligible.Reliance Communications, which had applied for GSM spectrum in January 2006, has already paid the licence fee to the government last week and is awaiting allocation of the initial 4.4 MHz of spectrum.However, sources say there is no clarity on how the Tatas application will be assessed in terms of priority for spectrum allocation, a matter on which the company is likely to seek clarification. In case they are treated as an existing operator seeking dual spectrum, they should be at par with Reliance and accordingly would be ahead of over 40 new applicants who put in their application for a UASL licence till October 2 - the last date fixed by DoT for such licences, as well as existing operators seeking new licence for expansion in new circles.In case the Tatas are considered from number 2 to number 4, and just behind Reliance, in the queue for allocation of spectrum in most of the circles that they have applied they stand a fair chance to get spectrum in some circles. This would of course make it more difficult for new applicants like HFCL, S-tel, Parsvnath and Reliance Communications supported Swan and Cheetah Telecom to get spectrum for their pan-India GSM operations as they get pushed further behind in the queue.However, if the Tatas are treated as the last applicant - the chances of them getting spectrum look very bleak.With the government following a policy of "first come-first served" for allocation of spectrum - the first preference would go to companies like Idea, Aircel and Vodafone Essar which have already got licences but have not been allocated fresh spectrum to start operations, followed by existing operators looking for dual spectrum and thirdly existing operators like Idea and Spice Telecom who have applied for licence in newer circles as part of their expansion. The fourth category would be of new applicants.
