The Spectrum Tussle - Cdma V Gsm

[Arun 795]

Times News Network

4 Oct 2007, 0146 hrs IST - New Delhi

The simmering hostilities between the GSM and CDMA telecom operators finally spilled over publicly in telecom minister, A Raja's presence on Wednesday.

The big daddies of India's telecom sector, Sunil Bharti Mittal of Bharti Airtel and Ashim Ghosh of Vodafone were among those that met Raja. It is learnt that Mittal was the first to initiate a dialogue on spectrum.

Matters later took an expectedly ugly turn over licence and spectrum eligibility issues, with both sides repeating their arguments all over again for the minister's benefit. The GSM camp also indulged in serious TRAI bashing, saying "TRAI has erred seriously" (in its recommendations).

Opposing any bid by the government to auction spectrum, GSM players essentially bargained for additional doses of spectrum without a fresh entry fee on a priority basis as per the old subscriber-linked policy, arguing that this is a contractual right.

They said there should be no cap on spectrum, as operators are entitled to optimal spectrum based on parameters of usage, justification and availability. They further insisted that available spectrum is being stretched to its full efficiency level.

TRAI's recent recommendations have substantially stiffened the subscriber-linked allocation process, putting any additional spectrum far out of reach. TRAI further states that spectrum is being used inefficiently, suggesting that the existing spectrum available with operators can itself serve over 450 million subscribers, more than twice the present 190 million mobile subscriber base.

In contrast, CDMA players applauded these recommendations. AUSPI argued that GSM operators were 'twisting facts and figures'. "Their demand for spectrum is based on usage of old technology available in 2003. Since then there have been significant technology advancements allowing optimum and efficient use of spectrum", says SC Khanna, secretary general, AUSPI.

However, both sides were able to hold hands on the only issue of common benefit: lowering of taxes and levies.

[coolrajiv 1]

Source - http://www.telegraphindia.com/1071101/asp/...ory_8498694.asp

Spectrum shock for GSM

Govt norms tougher than Trai

New Delhi, Oct. 31: The Telecom Engineering Centre (TEC) today proposed tough subscriber norms for extra spectrum to GSM operators.

In Calcutta, for example, an operator wanting 6.2MHz spectrum will need to have 6 lakh subscribers. Initially, when a telecom firm gets a licence, it is given 4.4MHz of spectrum free.

Similarly, the new rules recommend that for 8MHz, the telecom player in Calcutta must have 20 lakh subscribers; for 10MHz, 36 lakh subscribers; for 12.4MHz, 50 lakh; and for 15MHz, 65 lakh.

This is substantially higher than what the Telecom Regulatory Authority of India had prescribed.

However, for rural and remote regions, the norms have been eased.

The regions include Haryana, Orissa, Himachal Pradesh and Jammu and Kashmir.

The TEC is the technical arm of the department of telecom (DoT). Its brief was to evaluate the recommendations on extra spectrum by Trai.

Sudipto Basu, a telecom analyst, said, “TEC’s recommendations prove that the government is serious about increasing mobile penetration in Tier II and Tier III cities.”

GSM operators are livid at the TEC proposals. The Cellular Operators Association of India, the lobby of GSM companies, today said the “exercise appears to be aimed at destroying the performing sector”.

“The excessive hike in subscriber numbers was being done with a single point agenda to choke and deprive the existing GSM operators of spectrum and to facilitate a priority entry of select players into GSM,” the COAI said.

It also accused the TEC, the technical wing of the department of telecom, of being completely non-transparent.

COAI director general T.V. Ramachandran said the general feeling in the industry was that “it (GSM operators) was being punished for going to TDSAT (the telecom tribunal) on this issue”.

Last week, the GSM operators had moved the Telecom Disputes Settlement Tribunal (TDSAT) challenging the government’s move to offer GSM licences to CDMA operators.

Spectrum norms of the TEC relates only to GSM operators. CDMA operators did not provide adequate data for calculations.

The TEC, which submitted the report today, has also recommended the adaptation of innovative technology by companies for efficient use of spectrum.

These include in-building signal boosters or Wi-Fi equipment inside basements.

Telecom operators say the newer technology will not solve the problem of spectrum crunch.

Rajat Mukarji, spokesperson for Idea Cellular, said, “We are already using signal boosters to provide better clarity of voice and less call drops inside buildings, however, Wi-Fi can be used only if all handsets are compatible to this technology.”

The report has also suggested a higher number of base transceiver stations or towers in a geographical area, especially in central business districts of cities that have heavy call traffic.

Edited November 1, 2007 by coolrajiv

[kesav 127]

TEC has done a fantastic job.

I salute it.

These are very few moments in life when you feel that Govt. and Democracy is working properly.

http://www.tec.gov.in/what%20new.html

http://www.dot.gov.in/as/Spectrum%20Alloca...-tec-report.pdf

Spectrum is a national resource and it should be used very wisely.

So far our great GSM lobby were hoarding on to spectrum without deploying proper technologies in improving spectrum efficiency.

I would request DoT to immediately sent notice to operators to settle back the spectrum which they've in excess if they're unable to acquire requisite subscribers within one year.

This will help Govt. to keep current operators in par with incoming operators.

It'll also help in avoiding future litigations on excess spectrum with current operators.

They'll shout for sometime then they'll automatically fall in line to keep their pockets bulging.

If you continue to watch the sector it'll still grow exponentially without hiccup proving this cry of unjustice is driven only by greediness.

Even after these tough measures they'll still clock better and greater revenues in the upcoming quarters.

All the top corporates in India(especially GSM opertaors) are interested in making quick money and nobody interested in ploughing back the money in improving the technologies used or servicing the customers better.

Edited November 1, 2007 by kesav

[prakashkadam 1]

Without going into details can anybody clear it, what are the implications of TEC report and TRAI's adoption of it.

- in terms of technologies GSM vs CDMA

- Operators both GSM and CDMA

- Services to the end user

- Cost of the services, where it is going southwards or northwards.

-prakash

TEC has done a fantastic job.

I salute it.

These are very few moments in life when you feel that Govt. and Democracy is working properly.

http://www.tec.gov.in/what%20new.html

http://www.dot.gov.in/as/Spectrum%20Alloca...-tec-report.pdf

Spectrum is a national resource and it should be used very wisely.

So far our great GSM lobby were hoarding on to spectrum without deploying proper technologies in improving spectrum efficiency.

I would request DoT to immediately sent notice to operators to settle back the spectrum which they've in excess if they're unable to acquire requisite subscribers within one year.

This will help Govt. to keep current operators in par with incoming operators.

It'll also help in avoiding future litigations on excess spectrum with current operators.

They'll shout for sometime then they'll automatically fall in line to keep their pockets bulging.

If you continue to watch the sector it'll still grow exponentially without hiccup proving this cry of unjustice is driven only by greediness.

Even after these tough measures they'll still clock better and greater revenues in the upcoming quarters.

All the top corporates in India(especially GSM opertaors) are interested in making quick money and nobody interested in ploughing back the money in improving the technologies used or servicing the customers better.

[kesav 127]

Aircel withdraws from COAI petition in TDSAT.

NEW DELHI: In a setback to GSM operators association COAI, engaged in a legal battle against the government over its decision to allow dual technology and higher subscriber-based spectrum allocation norm, mobile operator Aircel today recused itself from the case.

During the proceedings of the Telecom Disputes Settlement and Appellate Tribunal, Aircel's counsel informed its decision to withdraw itself from the suit.

However, on being asked by the tribunal, Aircel's counsel Meet Malhotra refused to give details.

"We have decided that we do not want to be petitioners in this case," Malhotra told media.

He pointed out that the case was still at a primary stage as notices were yet to be issued by the TDSAT.

According to industry sources, there could be some more withdrawals by mobile operators from the case.

However, Aircel's senior officials had yesterday told media that it would continue to be a part of COAI.

GSM operators have been hit hard by the DoT decisions to allow cross-over technology to GSM and CDMA operators on a single licence as well as substantial hike in the number of subscribers for allocation of additional spectrum.

The decision of Aircel to pull out of the ongoing legal duel with the government may not significantly weaken COAI's case but it expose the association as a divided house.

COAI yesterday had said it would file more than one affidavit in the TDSAT shortly on the TEC report which recommended further enhancement in subscriber base for additional spectrum allocation.

source :: http://economictimes.indiatimes.com/News_b...how/2511665.cms

Its on the expected lines.

After all TEC and DoT are fighting to get spectrum for these type new pan India operators(spice,aircel etc.,) from GSM bigwigs who wants to engulf all available national resources.

Edited November 2, 2007 by kesav

[kesav 127]

Another wicket in the verge of falling.

Coalition of oppurtunists(COAI) withers under pressure.

Spice to decide on COAI petition before Nov 12.

Sunil Mittal's outcry is only destabilizing his trained parrot T V Ramachandran.

NEW DELHI: B K Modi-promoted Spice Communications will decide before November 12 whether it will pull out of the COAI's petition in the TDSAT, where the association has challenged the government's decision allowing dual technology use and enhanced subscriber-based spectrum allocation.

"We have not yet taken any decision (to pull out of the COAI petition)... studying the situation. We feel there are different views in COAI. Everybody is playing differently. Sunil Mittal has written a letter on his own to the government. We want to resolve the matter. We are here to serve the customer, not to indulge in litigation", B K Modi told the media.

However, the association is unfazed by these developments and said majority of the members of COAI are committed to taking the battle to its logical end.

"There is a clear majority of members fully committed to continue with the crusade to seek justice and fair-play for GSM operators," TV Ramachandran, Director Genaral of COAI, told the media.

Asked whether the company would continue to be a part of COAI even if it recuses from the petition, Modi said, "Nothing can be said at the moment". Spice operates in Punjab and Karnataka and has applied for Unified Access licenses for pan-Indian presence. It also has NLD and ILD licenses.

If Spice Communications withdraws, it will be a double jolt to the COAI after Aircel, in which Maxis holds majority stake, today announced its decision to pull out from the petition. The Modi Group owns 51 per cent stake in Spice Communications, while the remaining stake is with Telekom Malaysia.

http://economictimes.indiatimes.com/News/N...how/2512477.cms

Edited November 2, 2007 by kesav

[Arun 795]

Reliance Communications, Aircel, Vodafone, Idea may get more spectrum

The Hindu Business Line - New Delhi, Nov 3, 2007

Reliance Communication (RCom), Aircel, Idea Cellular and Vodafone Essar could get more spectrum for expansion. The Ministry of Communications is set to approve allocation of spectrum to these operators ahead of the other 46 applicants as these four companies have already paid the required licence fees.

Spectrum circles

While Aircel is likely to get spectrum for 14 circles, Idea Cellular is expected to win spectrum for Mumbai and Bihar. Vodafone Essar is likely to be allotted six new circles in Tamil Nadu, West Bengal, Orissa, Assam, North East and Jammu and Kashmir. RCom, despite objections from the Cellular Operators Association of India, could also be given the go-ahead for a pan-Indian GSM rollout. The Ministry is also set to direct the Department of Telecom to issue letter of intent to other new applicants who fulfil the eligibility criteria.

First in line

The Ministry’s proposal, however, means that once the Defence releases spectrum, these four companies would be the first to get it. This also means that the Government is in favour of continuing to award spectrum on a first-come first-serve basis despite DoT’s suggestion to conduct an auction.

The Defence is likely to release 20 Mhz spectrum in which one more operator can be accommodated other than the four.

Pan-Indian operators

The four companies will now be all set to become pan-Indian GSM mobile operators and join the league of Bharti Airtel, which is the only operator with a national footprint. The spectrum allocation proposal, would, however be bad news for Bharti Airtel, which is the only major telecom company not to get spectrum this time around. Even State owned BSNL and MTNL have been given up to 10 Mhz. This could also divide the GSM industry, which has filed a legal petition against the decision to give permission to RCom to offer GSM services in addition to its existing pan Indian CDMA mobile services.

While Aircel has already withdrawn from the legal proceedings, it could now be difficult for Idea Cellular and Vodafone to support COAI’s petition as they are also now benefiting from the Government’s decision.

However GSM industry sources said that the operators would remain united as the opposition was to allowing RCom’s entry into GSM services ahead of the other 46 applicants and larger issues related to increasing the subscriber base criteria for additional spectrum were yet to be resolved. They pointed out that RCom had applied for GSM spectrum citing shortage in CDMA radio waves, which is contrary to the Government’s new policy asking operators to pack in more subscribers within the given frequencies.

[kesav 127]

DoT may ask operators to return excess spectrum.

If enforced it would be fantastic achievement for the nation in protecting national resource.

There can't be 2-way treatment of incumbent and upcoming operators.

Saying its not possible to return back the spectrum is unscientific and baseless.

If operators can't revamp the spectrum centrally then there's a great flaw in their network configuration.

They've to reengineer complete network architecture. If the the network architecture is not scalable(both upwards and downwards) then there's real crisis brewing. If it continues they can never implement upcoming spectrum effiecient technologies.

In this age of ICT saying refarming the spectrum involves too much capex is against the spirit of the scientists/engineers/technologists working for this sector sleeplessly.

NEW DELHI: In yet another twist to the battle for spectrum, the department of telecom (DoT) is learnt to be preparing a detailed note to access the amount of excess spectrum held by telcos and may also impose a time frame by which service providers must return the extra radio resources.

The logic is based on the recent report of the Telecom Engineering Centre’s which had suggested the subscriber-linked spectrum allocation norms be increased between 4 to 15 times before they are allocated additional spectrum.

Under the new norms, all operators hold excess spectrum. Sources said that the DoT report would suggest that telcos either raise their subscriber numbers, as mandated by the new norms, or surrender excess spectrum within a stipulated time frame. (The new norms for CDMA players are yet to be announced and are expected soon.)

However, sources said that the DoT report would only be a pressure tactic and cannot be legally implemented. At the same time, any such plan will also impact state-owned telcos BSNL and MTNL. At a recent meeting with the media, BSNL sources said that there would be no possibility of surrendering spectrum:

“The networks are planned and rolled out to work on the spectrum available. Operators cannot return any spectrum without changing the network configuration completely, which incurs a huge cost. There cannot be any question of any operator, including BSNL or MTNL of surrendering any spectrum back,” a top BSNL executive said.

Meanwhile, communication minister A Raja has cleared the air over allegations from GSM players that the new telecom policy was aimed at favouring just one single operator (Reliance Communications).

In a communication to Prime Minister Manmohan Singh, Mr Raja said that the Cellular Operators Association of India, the body representing all GSM operators, was misleading the country by opposing the scientific approach that his ministry has followed on frequency (spectrum) allocation. Mr Raja described that his ministry’s efforts as “honest endeavours” which would help increase the teledensity and “lower the tariff for the benefit of the public in general and customers in particular.”

http://economictimes.indiatimes.com/DoT_ma...how/2517691.cms

Edited November 5, 2007 by kesav

[Arun 795]

COAI action on spectrum issue unwarranted: Anil Ambani

2007-11-05 16:00:43 - MoneyControl.com

Anil Ambani, Chairman of Reliance Communications said that the move of existing GSM players will curb competition, reports CNBC-TV18. He added that the Cellular Operators Association of India, or COAI, action on spectrum issue was unwarranted.

Excerpts from CNBC-TV18’s interview with Anil Ambani:

Q: What is your take on the entire spectrum issue?

A: The Cellular Operators Association of India, or COAI, action is not representative of the Indian mobile industry. There are eight or nine players, who operate on the mobility platform.

Initially, five companies out of nine took the matter to the Telecom Disputes Settlement and Appellate Tribunal, or TDSAT. I believe two of them have already withdrawn from the case and only three are left in this matter. So, clearly we have disassociated; being a member of COAI and a GSM operator in eight circles.

Others have also realized that this was an unwarranted, unnecessary and misguided action by the COAI, against the future of competition and the future of the consumer.

Q: There has been a lot of controversy around your going into GSM and getting spectrum over the other operators. What is your take on the regulation and how do you think it should pan out?

A: When you look at the propaganda by COAI, the reality is something that they do not want to recognize. The reality is that the licenses are technology neutral, they were upheld by TRAI and recommended to the DoT.

We were issued permission to operate on both the platforms and we have paid a fee of more than Rs 1,650 crore. Our spectrum eligibility date, which has been misrepresented by certain parties, is October 19, 2007. It is unnecessary, unwarranted and misleading propaganda.

Q: Do you think that the implications could derail your GSM plan?

A: We respect the judiciary process and see absolutely no reason. The entire approach of two-three players left in this petition, is to ensure that there is no new competition in the GSM space and stall any further stronger players from coming into this business.

If you look at what some of these players have done and practiced in the last three-six months, it is a visible sign of price fixation. They keep increasing their tariffs and changing their service cost parameters. I think this is anti-consumer from their perspective.

Q: What is the course of action you are going to take?

A: We have no course of action.

Interview Video

[copperco2 24]

very good update..

[Arun 795]

Anil Ambani writes to PM, slams GSM operators' claims on spectrum

The Hindu Business Line

New Delhi, Nov. 11

The war of letters between honchos of mobile companies over Government's spectrum policy has intensified further with Reliance Communication's Chairman, Mr Anil Dhirubhai Ambani, writing to the Prime Minister, Dr Manmohan Singh, in support of the decisions taken by the Communications Ministry.

Mr Ambani told the Prime Minister that the policymaking process adopted by the Department of Telecom was completely transparent and the GSM operators are adopting an anti-consumer and anti-competitive stance in spreading false and misleading propaganda against the policy makers.

Earlier, existing GSM operators including Mr Sunil Mittal, Chairman, Bharti Airtel; Mr Kumar Mangalam Birla, Chairman, Idea Cellular; and Mr Arun Sarin, Chief Executive Officer, Vodafone; had shot off letters to the Prime Minister criticising the Communications Ministry's spectrum allocation policy that allegedly favoured a few companies including Reliance Communication. However, Mr Ambani has backed the Communications Ministry's policies and said that the GSM players were spreading myths that it was favouring any particular company.

"The motivated game plan of a few large GSM operators in the country is simple - prevent the entry of new players in the GSM space, hoard spectrum, and limit new competition, indulge in anti-consumer practices such as cartelisation and price fixation, delay implementation of all new initiatives indefinitely through a combination of litigation and policy uncertainty to enhance their own dominance, and make the cost of entry for new players prohibitive and unviable," Mr Ambani said in the letter.

On the specific allegation made by the GSM operators that RCom has been arbitrarily allowed to offer GSM services, Mr Ambani said that the DoT had followed a due process which included a comprehensive public consultation by the telecom regulator.

He added that contrary to the perception that dual technology approval has been given only to Reliance, DoT has granted approvals to two other operators and is in the process of granting approval to Tata Teleservices.

Excess spectrum

On GSM operators' claims that the subscriber linked spectrum allocation norms specified by the Telecom Engineering Centre was unrealistic, Mr Ambani said that the large GSM operators had so far taken spectrum free of charge and far more than 6the .2 Mhz which was what they were entitled to.

"In line with the global practice, there is a strong case for DoT to now demand the surrender of excess spectrum wrongfully being enjoyed by the existing GSM players, far in excess of their needs, and far beyond anything they were entitled as per their original licence conditions," Mr Ambani said in the letter.

On the issue of auctioning spectrum, Mr Ambani said that auction of spectrum will only benefit existing mobile operators as it will push the cost of entry for a new player, making it unviable for them.

Mr Ambani has urged the Prime Minister to "see through the motivated agenda of a few existing GSM operators and not succumb to their pressure tactics."

[coolrajiv 1]

Source - http://www.telegraphindia.com/1071112/asp/...ory_8538250.asp

New Delhi, Nov. 11 (PTI): Reliance ADAG chairman Anil Ambani has accused GSM operators of “hoarding” surplus spectrum and sought Prime Minister Manmohan Singh’s intervention to ensure that service providers such as Vodafone and Bharti Airtel surrender excess airwaves.

In a scathing attack on GSM players, who are demanding extra spectrum and have moved telecom tribunal TDSAT on new spectrum norms, Ambani said even sector regulator Trai, fair trade practices watchdog MRTPC and also the telecom tribunal have issued notices to Bharti and Vodafone for “anti-consumer practices”.

It is essential that the future of telecom industry is “not undermined by a few with … narrow personal interests”, Ambani said in a letter to Singh a few days before Diwali.

The letter comes after GSM lobby Cellular Operators Association of India challenged the new policy of allowing dual technology for mobile telephony and new spectrum allocation norms as recommended by the Telecom Engineering Centre.

[kesav 127]

TDSAT defers COAI case against govt to Dec 12

Its mainly because the DoT has constituted a committee to study TEC's report.

Committee may take 3 weeks to finalize the report.

TDSAT has deferred COAI's case against the government on mobile dual tech use to December 12. TDSAT has said there will be no allocation of spectrum till that date.

Meanwhile, Rel Comm, BSNL, MTNL, Shyam and HFCL have also been made party to COAI’s case.

On the case being deferred yet again:

The government council, Solicitor General Goolam E Vahanvati has assured the TDSAT that there will be no allocation of spectrum to any of the applicants as of now till December 12. This is because currently, the government has setup a committee, this is after the controversial TEC report, under the chairmanship of the Additional Secretary Telecom.

That committee, one understands, will take three weeks to submit its reports. So the Solicitor General has assured the TDSAT, and the other parties involved in the case, that there will be no additional spectrum. That report, one reckons, will be out in the next couple of weeks.

So till then the judge felt that it makes more sense to wait for that report to come in because that could in a sense soothe some of the apprehensions of the GSM players.

This is only one part of the case.

The latter part of course, is the controversial issue of crossover allocation of spectrum, on allowing CDMA operators to use GSM technology. Even on that particular issue, the hearing will now happen on December 12.

On Reliance Communication, BSNL, MTNL and the likes being made party to case:

The petition was filed by COAI against the Government of India. Now, since a lot of the allegations made in this petition referred directly to Reliance Communication and to some extent, in the next affidavit they have leveled few acquisitions against BSNL and MTNL as these two companies have got the spectrum without their meeting the subscriber thresholds. Because of this the judge felt they should also be made a party to the petition.

Reliance Communication’s Council also said they should also be made party to the petition as they have a few things to say as well.

Now it’s going to be a very interesting battle because, on one hand you have all the GSM operators like Bharti, Vodafone, Idea, all of them being represented by COAI. On the other hand, there’s the government and Reliance Communication. So it’s going to be one interesting battle.

So what happens after December 12. Everybody was watching out for what Anil Ambani had to say on this issue and now that company too has been made party to this petition.

There are two separate issues, one is the issue of the spectrum allocation norms, which again as GSM operators claim, are extremely ad-hoc. Some apprehension on this issue would be taken care of by the committee that’s been setup. So in three weeks time running into December 12, some of those apprehensions will be taken care of.

The other issue, which is on crossover allocation, on allowing CDMA operators, GSM technology, government seems to be no mood to budge. In fact, the government council made very clear today that this move was done in the interest of the consumer and that there’s no question of baking down. So on that particular issue it’s going to be one tough fight and it’s going to be difficult for the GSM operators to get the government to change its decision.

On Vodafone-Essar’s Arun Sarin also writing a letter to the Prime Minister:

Meanwhile, Vodafone-Essar’s Arun Sarin has also written to the Prime Minister because it is also a vested party. If the current subscriber threshold norms are put in place, Vodafone will be hugely impacted.

Sarin, in his letter, has categorically mentioned that, when his company made USD 16 billion odd investment into India, it didn’t foresee that spectrum norms would be changed so fast and so significantly.

Then, a day later, Rel Comm’s Anil Ambani wrote a letter to the Prime Minister. Of course, the battle is going to be fought in the corridors of power and in the court rooms.

source :: http://www.moneycontrol.com/india/news/bus...12/16/04/312473

[kshah 452]

GSM guys has always been crating hurdles, even when reliance and tata entered in 2003 or 2002. They just want to protect their inefficinet technology and network at the cost of consumenrs, they do not want to reduce prices nor want to serve rural customers as per license terms.

[Honest 836]

^^^

Yes my dear kshah you are 100% right. These all GSM operators, especially Vodafone are really looting innocent subscribers. Hopes that Reliance and TATA will teach them the lesson soon.

Regards.

[@ksh@T 20]

Clear all spectrum applications before RCom's: COAI

NEW DELHI: GSM operators on Thursday mounted a counter attack on Reliance Communications, saying its request for GSM spectrum should be looked into only after all applications for new licenses pending as of October 1, 2007 were processed.

According to sources, GSM lobby Cellular Operators Association of India (COAI) today met here to finalise its reply to Department of Telecom's affidavit in TDSAT and is of the view that "cross-over allocation (dual technology) is nothing but a brand new GSM license."

Pending applications include 575 new applications, that of companies who have been issued licences without spectrum and existing players waiting for additional frequency for expansion purposes.

Moreover, the COAI pointed out that additional spectrum as sought by Reliance Communications cannot be allocated in tranches of 4.4 MHz and must only be in tranches of 1.8 to 2.4 MHz (for GSM services).

If Reliance Communications is allocated 4.4 MHz GSM spectrum, then the existing operators who have been waiting for additional spectrum for many months and even years in many circles should also be treated similarly, COAI said.

COAI said that the February 2006 application of Reliance Communications cannot be acted upon and given effect to in October 2007. "Such an action would be clearly arbitrary, perverse and clearly illegal," it added.

Earlier this week, Reliance Communications chief Anil Ambani had accused GSM operators of "hoarding" surplus spectrum, while seeking Prime Minister Manmohan Singh's intervention to ensure that service providers like Vodafone and Bharti Airtel surrender the excess airwaves.

they seem to be terrified

[kesav 127]

COAI bends to end spectrum row

Surajeet Das Gupta / New Delhi November 15, 2007

GSM lobby says it is open to auctioning frequencies beyond 10MHz.

In a strategic climb-down, key members of the Cellular Operators Association of India (COAI) have come to a consensus that they are willing to go for open auction of spectrum for second-generation (2G) services beyond 10 MHz.

This might bring the curtain down on several months of controversy over the issue of pricing spectrum, the radio frequencies that enable wireless communications, to incumbents facing rapidly expanding subscriber bases.

Till today, COAI, the lobby representing mobile service providers offering GSM technology, had vehemently opposed the auction route for 2G spectrum.

2G services refer to the current level of services. 3G services, which are yet to be introduced, provide high-speed internet access for customers.

COAI had earlier asserted that the government should continue to provide additional spectrum to GSM players, which account for more than two-thirds of service providers in the country, up to 15 MHz linked to a minimum subscriber criterion. The government had committed to this some years ago.

The COAI climb-down could help the Department of Telecom (DoT) come out with a solution to the contentious issue of spectrum pricing. Auctioning means that the minimum subscriber criterion to qualify for additional spectrum can be scrapped.

The subscriber criterion had become a contentious issue after a government body suggested a hefty increase in the minimum qualifying norm by four to 12 times for additional spectrum. The norms suggested were higher than what the telecom regulator had recommended.

This would have ruled out virtually all the incumbent GSM operators. COAI has already appealed against the issue to the telecom tribunal.

Today's move by COAI members goes much beyond the telecom regulator's recommendation that operators should pay a one-time charge on allotment of spectrum beyond 10 MHz.

The regulator had suggested that operators should pay Rs 80 crore for the Delhi, Mumbai and A circles for 5 MHz of additional spectrum, Rs 40 crore for the Kolkata and category B circles and Rs 150 crore for C circles.

As things stand, many of incumbent GSM operators have already received up to 10 MHz of spectrum from the government. These include Bharti and Vodafone in Delhi, BPL and Vodafone in Mumbai, Idea Cellular in Maharashtra, Bharti in Karnataka and Aircel in Tamil Nadu.

In other service areas, operators that have received spectrum close to 10 MHz include Bharti in Mumbai (9.20 MHz), Vodafone in Kolkata (9.80 MHz) and Gujarat (9.80 MHz).

All these players have applied or will require additional allocation of spectrum based on the current subscriber criterion.

Confronted with strong opposition from the GSM lobby, DoT had decided to set up another committee to re-examine the matter.

Today’s softening of stance comes against recent moves by COAI to challenge several recent government decisions before the telecom tribunal.

The two principal cases centre on dual-use technology (GSM or CDMA) on the same licence and the subscriber base criterion suggested by the regulator. COAI is also considering going to court on allowing new players to enter 3G spectrum auctioning.

source :: http://www.business-standard.com/iceworld/...04390&tab=r

GSM gangsters some how wants to hoard the spectrum. They'll fall to any cheap level for that. They're incompetent in improving technologies to utilize the spectrum effectively.

Selective auction above 10 MHz is useless. Then you'll end up with just 2 or 3 players getting qualified for auction. Anyway those operators are already in the same cartel. Hence you'll never get to know the real market value of the spectrum.

Edited November 16, 2007 by kesav

[kesav 127]

Raja rules out auction of spectrum.

A good move.

NEW DELHI: The communications ministry, on Thursday, put the last nail on the coffin of the ongoing uncertainty over the allocation methodology for 2G spectrum. In a written reply to the Rajya Sabha, communications minister A Raja ruled out selling or auctioning 2G spectrum and said that radio frequencies would continue to be allotted based on the subscriber base of the telcos.

In yet another significant announcement, Raja said that telecom licences to new applicants will continue to be given as per the existing policy of first-come-first-serve. This implies that only a select few, or a maximum of three or four of the 45 new applicants, stand a chance to launch cellular services in India.

“The government has decided to grant new Unified Access Services Licences (UASL) as per the existing policy. Selling or auction of 2G spectrum is not envisaged under telecom access services licences,” Raja said while replying to a query from Rajya Sabha MP and former chief of BPL Mobile Rajeev Chandrasekhar.

Replying to another query, the minister of state for communications and IT Shakeel Ahmad said that additional spectrum for all telcos is allotted ‘taking into account the subscriber-based eligibility criteria and subject to availability of spectrum in the telecom service area’.

He said that a committee has been set up to recommend the revised subscriber-based spectrum allocation criteria for allotment of 2G spectrum. Responding to a question on the policy for new licences, Ahmad said: “The government has decided to grant new UASL as per the existing policy.”

The existing policy envisages that GSM operators get 4.4 MHz of spectrum and CDMA players get 2.2 MHz of radio frequencies bundled with the telecom licences for all circles. Additional spectrum is then allotted subject to operators meeting pre-defined subscriber base targets. The minister also added that the government had not issued letters of intent (LoIs) to any of the new applicants. “No letter of intent for UASL has been issued after March 5,” he added.

In fact, Raja, in an earlier communication to PM Manmohan Singh, had already clarified the reasons for not auctioning 2G spectrum. “The issue of auction of spectrum was considered by the Trai and the Telecom Commission and was not recommended as the existing licence holders who already have spectrum up to 10 MHz per circle got it without any spectrum charge. It will be unfair, discriminatory, arbitrary and capricious to auction the spectrum to new applicants as it will not give them level playing field,” he had told the PM.

Telecom regulator Trai, in its recent recommendations, had proposed that telcos increase their respective subscriber base between two and six times before they are granted additional spectrum. This was challenged by the Cellular Operators Association of India in the telecom tribunal.

It resulted in the department of telecom (DoT) asking its technical arm — Telecom Engineering Centre — to come out with a fresh report on the spectrum allocation norms, and later in its report suggest that telcos increase their subscriber base between four and 15 times before they are granted additional spectrum.

Confronted with stiff opposition from the GSM lobby, the DoT last week announced that it would set up a fresh committee with industry representation to review the TEC report, indicating that the recommendations made by the TEC could be relaxed. The COAI, however, filed a fresh affidavit in the telecom tribunal challenging the TEC report despite two of its members — Aircel and Spice — opting out of its earlier petition. Ahmad also informed Parliament that the matter (the new spectrum allocation recommendations) was sub-judice in the telecom tribunal.

source :: http://economictimes.indiatimes.com/News/N...how/2544476.cms

[kesav 127]

Another interesting move...

Parliament to take up 2G spectrum issue. Minister to make statement on 22 november.

NEW DELHI: Following media scrutiny, court cases and multiple letters to Prime Minister (PM), it is now the turn of the Parliament to debate pricing and allocation method for 2G spectrum.

This comes as a result of a calling attention motion filed by Rajeev Chandrasekhar, Rajya Sabha MP and former chief of BPL Mobile. Based on the motion on issue of 'Process and terms of sale of defence spectrum to private telecom operators', communication minister A Raja has been asked to make a statement on 22 November.

Chandrasekhar additionally wrote to the PM on Wednesday, asking his government and Raja to defend two issues. First, Chandrasekhar asks for the government's estimate of the present commercial value of spectrum (that is being recovered from the defence ministry), questioning why the government and the ministry is levying charges for spectrum that were discovered through a tender process six years ago in 2001.

Two, he has asked why the tender route is not being followed again.

source :: http://timesofindia.indiatimes.com/Busines...how/2541720.cms

[kesav 127]

DoT's committee decided to invite the stakeholders and experts in this field to give their views before the committee on 26th & 30th November 2007.

source :: http://www.dotindia.com/as/Press_Release_d...for_website.pdf

GSM players may get DoT reprieve - Move part of multi-pronged formula to end telecom row

Business Standard / New Delhi November 19, 2007

The department and five operators will meet on Wednesday to discuss a multi-step formula.

The department of telecommunications (DoT) and the five large operators of GSM-technology mobile services that are scheduled to meet on Wednesday are expected to discuss a multi-step formula that will give priority to incumbents in spectrum allocation and lower the qualifying criterion for additional spectrum.

DoT's offer will be made on condition that GSM operators end all litigation filed at the telecom tribunal. DoT is also expected to emphasise that it will press ahead and introduce more competition in the sector.

These options are being considered as the basis for a settlement on the impasse over telecom licensing and allocation of spectrum, radio frequencies that enable mobile communications.

Under the formula, which has the support of key interlocutors in the sector, incumbent operators could be granted additional spectrum in their current service areas and for the new ones for which they have sought licences.

Holders of letters of intent like Maxis Aircel would come second, followed by CDMA-technology service operator Reliance Communications, which has applied for spectrum to launch GSM-technology services under its current licence.

New applicants would be considered for licences and spectrum, depending on their place in the queue, only after this.

Key to this formula is the suggestion that the minimum subscriber criterion for existing service providers to qualify for additional spectrum may either be lowered or operators granted spectrum on a temporary basis till they optimise their networks.

The qualifying criterion was first raised by the telecom regulator and then increased still further by DoT’s standards-setting organisation the Telecom Engineering Centre.

Communications ministry sources added that with DoT de-linking spectrum allocation from the new licences, all applicants will be granted licences but will be allotted spectrum based on their eligibility.

DoT will also grant incumbent operators more spectrum based on eligibility norms that are being reviewed by a committee comprising government officials and private sector representatives.

The operators are working on a strategy that could include demands to make the new subscriber norms applicable prospectively and not retrospectively. They may also demand that excess spectrum with incumbents not be withdrawn and spectrum charges be lowered.

Those invited to the meeting by DoT Secretary are Bharti's Sunil Mittal, Reliance Communications' Anil Ambani, Idea's Kumar Mangalam Birla, Spice Telecom's B K Modi and Vodafone India Chief Executive Asim Ghosh.

[Arun 795]

Trai opposes Raja's move on 3G auctions

21 Nov 2007, 1215 hrs IST - Times News Network

Telecom minister A Raja's bid to move to open auctions for three blocks of 10 MHz of 3G spectrum — his first strong move to promote real competition since he assumed office — is being opposed by no other than telecom regulator Trai.

In a three-page letter to the DoT, Trai contests that this move towards open auctions is not consistent with its recommendations. Trai's opposition is all the more curious considering that Trai chairman N Misra was seated next to the minister and DoT secretry DS Mathur during the announcement, which was made to the press on November 12.

In 2006, Trai had concluded, "government should not treat the allocation of 3G spectrum in continuation of 2G spectrum". However, it went on to contradict itself by saying 3G auctions should be reserved for existing 2G players alone. "Following one recommendation is practically impossible without deviating from the other," says a DoT official.

When contacted by ToI, Misra denied having written the letter. However, a senior DoT official confirmed receipt of this letter from the Trai chairman. In its letter, Trai has defined four primary areas of opposition to open auctions for 3G spectrum.

First, it wants auctions to be limited to existing 2G operators and UAS licence holders. Trai says it never recommended new entrants in 3G and neither did it envisage new 3G-specific licensing. This, Trai says, "will be unfair and create serious issues of level playing field".

Second, Trai says introducing only three new players in 3G through a 10 MHz allocation instead of Trai's proposal of only 5 MHz each, will discriminate against several existing operators. This is because government-owned BSNL/MTNL will be one of the three 3G service providers, which means only two/three of the rest five-eight private operators will migrate to 3G.

Third area of disagreement relates to DoT's decision to disallow mergers in 3G for 5 years. Trai believes this is unnecessary since all UAS licensees will be guided by general M&A guidelines. Imposing 3G-specific M&A guidelines is a "contravention of existing M&A guidelines and could lead to litigation", it says.

Lastly, Trai says DoT's attempt to restrict spectrum trading is also redundant as the existing UAS license already restricts trading/reselling. The letter is a signal of a complete ideological breakdown between the Trai and DoT, and also shows Trai's growing discomfort with the DoT's frequent alterations to its recommendations.

Under law, DoT is required to refer any recommendations that it plans to modify back to Trai for reconsideration before taking a final decision. Several parties, including the GSM industry, have recently accused the ministry of willfully violating legal procedure.

aw well there we go again

[KumaarShah 143]

^^^

Vindicates my oft repeated stand that MNP, Dual Mode Technology, and 3G will take much longer time to see the light in India. All the above three will fructify only by 2009 is my guess. Sorry for being pessimistic.

[shashank 8]

^^Actually you are toooooo much optimistic! I dont think they will start 3g by 2012

[Arun 795]

@sashank: LOL ! common'

well, it looks like that only from today's much anticipated meeting....

Telecom operators meet Secretary; deadlock continues

2007-11-21 18:02:20 - MoneyControl.com

All the telecom operators met the Secretary at about 11 in the morning. The meeting went on for a little over an hour and a half, and again no solution came out of that. All the GSM operators presented their case and of course Anil Ambani also presented his case there. No concrete offer for a settlement was made from the DoT, say sources.

The DoT at this point in time is not revealing its cards. Sources have indicated in the past that they are willing to settle for the TRAI norm and that could be the benchmark that DoT is looking at. But they haven’t yet made that offer to GSM operators, as they also want to understand the GSM operators’ point of view. GSM operators post that meeting, again met at the COAI office in Delhi. All the operators again are going to be meeting the Telecom Secretary.

Sources say that a resolution is unlikely at least in today’s meeting. This is a very tricky issue. It could go into at least three-four rounds of negotiations; the minister could get involved in the next stage. So, at this point in time it does look as if the deadlock continues. GSM operators aren’t very hopeful of a solution, at least not today.

No consensus between mobile firms, DoT

Business Standard - New Delhi November 21, 2007

No consensus emerged between the Department of Telecom (DoT) and the mobile service providers on the spectrum allocation issue at a two-hour long meeting held today. The meeting was held between the telecom Secreatry D S Mathur and the heads of Bharti Airtel, Vodafone, Reliance Communications among others.

Senior DoT officials however continued to meet the heads of mobile companies individually to resolve the issue of spectrum allocation to new and existing telecom companies.

Bharti Airtel chairman and managing director Sunil Mittal declined to talk to the media after the meeting saying "the operators have been asked not to make any comment". Vodafone-Essar MD Asim Ghosh was also present in the meeting among others.

As there was no consensus among the operators, Mathur asked operators to meet him individually later today, sources said.

According to sources, Reliance Communications chairman Anil Ambani raised the issue of extra spectrum being held by GSM operators. Some of the operators also demanded that Letter of Intent for new telephony licences should be issued immediately as in the last two years the government has granted over 50 permissions or LoIs under the same policy.

According to industry sources, Mathur requested GSM operators to withdraw their petition from TDSAT.

Cellular Operators Association of India (COAI) has challenged government's new norms including enhanced subscriber base and allowing of dual technology by a single operator under the same licence.

However, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) today did not take cognizance of the affidavit filed by the COAI on Tuesday. Sources said there was no direction to COAI by the tribunal to file either a rejoinder or an affidavit in reply to the one submitted by DoT to defend its new telecom norms that allowed dual technology for mobile services and enhanced subscriber linked criteria for spectrum.

[Ramchi 0]

As always my personal take (which has been consistent all along for the past couple of years or so), this drama enacted by all these guys sponsored by the inefficient operators who do not want to spend money in upgrading their Networks. This is such a convenient game by finger pointing each other in the process delaying 3G deployment and save tons of money by denying the best technology for consumers like us. If one brings 3G, naturally the other one has to invest as well so natural competition would creep up and may not justify the investment!!!

Indian customers have to s*uck their thumbs for few more years and be satisfied with substandard services of Vodafone, Airtel, Reliance, BSNL, TATA et al....