Solution to spectrum tangle in sight

Key mobile operators and the government are attempting a solution to the spectrum imbroglio, which includes accepting the Telecom Regulatory Authority of India's (Trai) recommendation on hiking the minimum subscriber base norms for additional allocation of spectrum.

In return, private GSM operators like Bharti Airtel and Vodafone Essar would not be asked to return the excess additional spectrum that they have received over the years beyond their contractual agreement under the licence (which is 6.2 MHz for GSM and 5 MHz for CDMA operators).

The operators are also willing to accept auction of second generation spectrum beyond what has been contracted. According to them, they are allowed to have spectrum up to 10 Mhz.

While key GSM players are not averse to accepting either cross-over technology, under which an operator can offer both CDMA as well as GSM services on the same licence, they are insisting that the spectrum fees in such cases be imposed on the total spectrum (GSM and CDMA together) with the entity. GSM players have already moved the telecom tribunal challenging this move.

Trai, in its recommendations, had suggested an increase in the subscriber norms by two to six times. However, with GSM operators opposing the move, the issue was referred by the DoT to its standards setting organisation "" the Telecom Engineering Centre (TEC).

The latter in turn recommended hiking the minimum subscriber number even beyond what the Trai had suggested. Earlier formulas had suggested the subscriber number be a mid-point between what the Trai and TEC suggested or a 25 per cent 'tightening' of the existing policy.

Meanwhile, a meeting of the Committee of Secretaries chaired by Cabinet Secretary KM Chandrasekhar on November 20 was of the view that the entire gamut of issues with regard to telecom "may be best discussed in a Group of Ministers".

Alternatively, the DoT was asked to consider a course of action that involved taking no action "to operationalise any issue that is before the TDSAT".

In addition, the department was also asked to abide by the February 20, 2003 advice of Trai that new licences are issued subject to the confirmed availability of spectrum.

DoT insiders say a GoM is not being formed and added that a decision on pending applications would be taken by mid-December, by when the TDSAT would have held another hearing and Parliament would have adjourned at the conclusion of the winter session.

This apart, a meeting of the spectrum norms review committee scheduled for Friday will see state-owned operators BSNL and MTNL, which had been attacked by private GSM operators for getting additional spectrum recently, give their views on spectrum. The TEC is also scheduled to present its views at the meeting.