GSM operators claim first right to 3G spectrum

The Cellular Operators' Association of India (COAI), which represents GSM service providers, has written to the government that they (GSM service providers) have the first right of use over 3G spectrum.

The association has quoted a Telecom Regulatory Authority of India (Trai) recommendation of September 2006 which stated "priority for allocating scarce spectrum to the existing licensees".

In a strong letter to the Department of Telecommunications (DoT), the COAI said depriving them of 3G spectrum would be a violation of Clause 2 of the National Telecom Policy (NTP) of 1999. The GSM operators have cited a "desperate 2G spectrum crunch" to seek "full cognisance of legitimate rights and claims of the licensees".

The COAI letter comes close on the heels of a similar letter by Tata Teleservices to the DoT opposing the move to reserve 3G spectrum for state-owned PSUs "" BSNL and MTNL "" and the entry of new foreign players in the 3G licence auction process before Indian companies' needs are met.

It had also questioned the Trai's recommendations to scrap the move to reserve 450 Mhz for CDMA 3G operations. The COAI letter comes in response to the DoT move to allow newer players to get into 3G operations, even though there is a scarcity of spectrum for the existing players.

In a letter to the DoT, the COAI has cited licensing clauses to argue the claim of the existing users over spectrum to the existing users in the country. In India, the spectrum is bundled along with the telecom licence and the entry fee is paid for licence for all access services.