Telecom tribunal to hear COAI plea on Monday

Stakeholders in the spectrum muddle will be closely eyeing Monday's developments when the Telecom Disputes Settlement Appellate Tribunal (TDSAT) will hear the Cellular Operators Association of India's (COAI) pleas against the government's move to permit dual technology in a given circle.

However, one thing that is clearly emerging from the spectrum imbroglio is that the industry will get even more competitive as new players enter the sector.

Currently, around 500 applications have been filed by 46 companies for offering services in 22 designated telecom circles of the country.

According to current norms, applications are processed on first-cum-first-served basis.

The department of telecom has decided to first process the applications for new telecom licences made by companies before September 25. Over 50% of the 46 companies put in their applications after September 25. The last date for submitting the application was October 1.

One, however, needs to remember that there are instances where the operator has been granted a licence but not allotted any spectrum as there is scarcity of spectrum in most of circles.

For example, Idea Cellular has got the licence for Mumbai and Bihar circles but has not been allotted any spectrum yet. The air force is expected to vacate 20 Mhz by December-end. Another 40 Mhz is expected be vacated by the air force by the middle of next year.

Spectrum is allocated on a per circle basis and all global system for mobile communications (GSM)-based service providers initially get 4.4 Mhz of spectrum.

The spectrum situation is particularly severe in Delhi and Mumbai, and to some extent in other metros and tier-I circles.