Asserting that new recommendations by TRAI, if accepted, would undo the Indian telecom growth story, Bharti Airtel today asked the government not to change existing spectrum allocation criteria.
It also warned against imposing one-time charge on the mobile operators holding spectrum over 6.2 Mhz as suggested by sectoral regulator TRAI, saying no such fee can be slapped on previous allocations.
Bharti, Vodafone and Idea have been opposing TRAI as it recommended that spectrum beyond 6.2 Mhz would be subject to one-time charge equivalent to the current price of 3G auction. These telcos hold spectrum over this limit in many circles.
In a letter to Telecom Minister A Raja, the company said, "It means that any operator who has been allocated spectrum beyond 6.2 Mhz in 2006 shall pay the enhanced charge despite the fact that government has allocated spectrum in 2008 to the new licencees at a fixed price of Rs 1,650 crore".
Stressing its point, Bharti said, "We therefore feel no one-time spectrum charge can be levied for any previous allocations against the terms and conditions of licence or allocations. If at all any such charge, it has to be very reasonable for the operators who have invested hugely to build rural networks".
On the TRAI suggestion to peg the price of 2G spectrum to the final price of 3G spectrum for beyond 6.2 Mhz, Bharti said "Even in its recommendations on dual technology (when CDMA players were allowed to offer GSM services also), TRAI was conscious about this fact that it would be unfair to levy any one-time spectrum charge for those spectrum allocations which were made prior to any policy of one-time charge".
The operator has also been critical of TRAI's decision to fix a spectrum ceiling of 8 Mhz (rest of India) and 10 Mhz (metros) and has sought continuation with the existing spectrum ceiling of 15 Mhz.
"Nowhere in the world have telecom operators been capped at such a low spectrum ceiling," it said while agreeing to a temporary ceiling of 12.4 Mhz in top 15-20 cities and 10 Mhz for the rest of the country.
Bharti also asked the government to continue with the additional 2G spectrum allocation policy based on subscriber figures and not accept TRAI's recommendation in this regard which has linked the allocation of additional radiowaves to roll out obligations.
"Ironically, TRAI gives top priority for spectrum allocation to operators who would cover less number of habitations. This defeats the purpose of promoting rollouts," it said.
On TRAI's proposals on spectrum refarming which calls for replacing the efficient 900 Mhz spectrum with 1800 Mhz at the time of licence renewal, Bharti said there is no way a change of network can be achieved on a scale that runs into tens of thousands of base stations.
"We request the government that the existing spectrum policy up to 15 Mhz should continue and the operators should be allowed to retain their existing spectrum/bands after the renewal of the licence and a reasonable charge for the renewal of 2G should be considered.
