The Spectrum Tussle - Cdma V Gsm

[Honest 836]

Global expert may head spectrum managing body

10 Jul, 2008, 0321 hrs IST, ET

MUMBAI: The Department of Telecom (DoT) is in favour of bringing in an international expert on spectrum management to head the Centre of Excellence for Spectrum Related Studies (CERSEM), an autonomous body being set up to look after planning and management of scarce radiowaves.

“The group should be headed by a senior expert, preferably internationally acclaimed expert, having wide-ranging experience in the field of spectrum management, as to have in-depth knowledge of related aspects,” the Wireless Planning Commission, DoT wing for spectrum management, said in an internal note.

An in-principle decision has already been taken to set up CERSEM in public-private partnership to support the WPC. CERSEM will conduct studies for greater sharing and reuse of spectrum among different services and applications without causing interference among different users. It will also study economic and other related aspects of spectrum sharing.

In January, the Planning Commission had suggested the setting up of a spectrum management group to identify radio frequency and allocate them. Telecom regulator Trai had also said that WPC was not able to “perform its role as as spectrum planner to the desired level” and the task should be handed over to CERSEM.

“The nucleus group for CERSEM and the expert need to be based in Delhi for continuous interaction with the WPC wing. The detailed project report, registration of the society and process of establishment of the CERSEM would also be undertaken by the officer identified to head the group,” said WPC.

While radio frequency (RF) spectrum extends from 9khz to 3000 Ghz, the usability of a part of spectrum depends on the availability of appropriate equipment as well as suitability of propogation conditions of the relevant part of RF spectrum for the required application. This is the main limitation on the availability of spectrum.

Communications as well as broadcasting services require spectrum and their rapid growth has made it essential that it be allocated in the most efficient manner.

The Government has been emphasising public-private partnership in the telecom sector. Seven telecom centres of excellence (TCOEs) have already been set up at selected IITs, IIM Ahmedabad and IISc Banaglore in association with telecom operators including Bharti Airtel and Tata Teleservices. These centres provide platforms for think tank activities.

Also, each of the TCOE focuses on a niche area of activity in the telecom domain to build world-class excellence. They create an environment of innovation in the top academic institutions of the country to enable absorption of the current technology and develop future ready indigenous capability.

Continuing this association with the private sector and institutions, “CERSEM can assign various topics of study to appropriate institutions, organisations and centres,” WPC added.

[Honest 836]

Amid 3G talks, DoT debates 2G auction too

11 Jul, 2008, 0045 hrs IST, ET

KOLKATA/NEW DELHI: The Manmohan Singh government’s recent decision to auction 3G spectrum appears to have revived the debate within DoT on whether 2G spectrum—valued at Rs 20,000 crore—should also be auctioned.

The matter, it is learnt, is being examined at the highest levels in the communications ministry, especially since both the finance ministry and Central Vigilance Commission (CVC) are favourably inclined to auctioning 2G spectrum.

“There is a view that revenues from sale of a scarce resource like 2G spectrum would be invaluable to the UPA government, especially amid recent inflationary pressures, rising oil prices and current account deficit,” a top official in DoT told ET on condition of anonymity.

The latest overtures from the communications ministry come at a time when the CVC is investigating the process of 2G spectrum allotment and has questioned the first-come-first-served policy and subscriber-based allocation criteria.

“At present, allotment of 2G spectrum is under challenge in the courts for a variety of reasons.

There is a view within the industry and sections of government that to bring about an end to the litigation and also instil confidence among investors, it may be advisable to adopt the time-tested public auction process to maximise government revenues and create a level-playing field for all stakeholders.

A possible switch in the 2G spectrum allocation policy towards an auction mechanism may also provide investors a viable exit route, especially those investors who’ve locked in sizeable sums and are stuck in the spectrum policy tangle,” said a senior government official close to the discussions.

While DoT is yet to agree on auctioning 2G spectrum, several models—including trading of spectrum—are doing the rounds in the Union communications ministry. Indications are that the actual adoption of any auction-based 2G spectrum allocation methodology will be undertaken through the consultation process.

[Honest 836]

Amar's spectrum call gets forwarded by PMO

15 Jul, 2008, 2358 hrs IST, ET

NEW DELHI/KOLKATA: The government has taken the first steps to appease the Samajwadi Party-its new partner at the Centre. The Prime Minster's Office (PMO) has forwarded SP general secretary Amar Singh’s demands to impose a windfall tax on private refineries and make GSM telecom operators pay for additional spectrum to the respective ministries and has asked them to look into it.

The PMO has asked both the communications ministry and finance ministry to look into and act on Amar Singh’s demands that GSM players be charged a one-time market rate for all the radio frequencies they hold over 6.2 MHz.

Last year, RCOM chairman Anil Ambani had written several letters to both PM and the communications ministry on exactly similar lines.

Sources said that DoT was considering Mr Singh’s demand that the government impose a one-time fee of Rs 1,312 crore for every MHz of spectrum that GSM players held over 6.2 MHz mark as this can rake up over Rs 10,000 crore to the government. Besides, this proposal is in line with an earlier demand from the finance ministry.

The Telecom Commission is slated to meet on Friday to consider levying one-time spectrum charges for existing telecom operators. Both Amar Singh and finmin want this one-time fee to be applied to all existing GSM telcos from the time their spectrum capacity crossed 6.2 MHz limit.

[Honest 836]

TRAI okays DoT request to hike spectrum usage charges

2008-07-16 18:19:21 CNBC-TV18

The Telecom Regulatory Authority of India (TRAI) has given the go ahead to the Department of Telecom (DoT) to hike spectrum usage charges. The spectrum usage charge hike is likely to be around 1- 2% across slabs. It could happen as early as this week when the Telecom Commission meets this Friday to take a final call.

TRAI had originally recommended a marginal hike in this levy last year in its recommendation. Now, DoT wants to further increase the charges over and above what was originally recommended by TRAI and so wanted to seek the approval of the telecom regulator.

TRAI is seeking details on the imposition of the one time spectrum acquisition fee for allocation beyond 6.2 MHz.

The hike in spectrum usage charges is negative for operators like Reliance Communications, Tata Tele, Bharti, Idea and Spice Communications.

[Honest 836]

DoT defers decision on spectrum fee

17 Jul, 2008, 0123 hrs IST, ET

NEW DELHI: The Department of Telecom (DoT) has deferred its plan to finalise the one-time additional spectrum charge for GSM operators holding spectrum beyond the 6.2 MHz limit.

The Telecom Commission (TC), DoT’s apex body, was to take a call on the quantum of this fee in its meeting on Friday. However, DoT has withdrawn this issue from the agenda. Sources attribute this to DoT being confronted with too many different models to calculate the fee, the muddling of matters with Samajwadi Party leader Amar Singh’s letter to the PM’s Office suggesting two other models and sector regulator Trai’s objections.

DoT had planned to impose a one-time fee of Rs 267.4 crore/MHz of spectrum held by GSM players over the 6.2-MHz limit. It arrived at this figure by dividing the Rs 1,651-crore entry fee by 6.2. But, this model differs from that of Trai, which recommended a one-time fee of Rs 3-16 crore per MHz but only for operators with spectrum over 10 MHz. Trai had also recommended an increase in the revenue share paid by operators.

On the other hand, the finance ministry has written to DoT asking that all players be charged a one-time fee of Rs 1,312 crore for every extra MHz of radio frequency allotted to them. The ministry wants this fee to be applicable to new players as well. If implemented, all new entrants, who have paid Rs 1,651 crore entry fee that guarantees them 4.4 MHz of GSM spectrum, will now have to shell an additional Rs 4,121 core.

As per this formula, several leading GSM players will have to cough up an additional Rs 3,000 crore as some telcos hold up to 10 MHz of radio frequencies.

CDMA players like Reliance Communications as well as Amar Singh have demanded that GSM players be charged Rs 1,312 crore/MHz for "excess" spectrum. While it’s in line with the finmin proposal, there are two key differences.

First, CDMA operators want this one-time fee to be charged for spectrum held by GSM players in excess of 4.4 MHz. Secondly, the finmin had wanted all existing and new players to pay the one-time fee, but CDMA operators want this applied only to GSM players.

[Honest 836]

COAI seeks PM support to guard excess spectrum to GSM players

17 Jul, 2008, 2001 hrs IST, PTI

NEW DELHI : Fighting to retain excess spectrum, the GSM operators on Thursday counter attacked saying rival CDMA operators are hoarding the scarce radio frequency under the dual technology licences.

Seeking Prime Minister Manmohan Singh's support, GSM players association COAI said, "The charge of hoarding spectrum can actually be applied in respect of some dual spectrum allocations, where the recipient got 4.4 MHz spectrum on virtually all-India basis, in a selective and preferential manner."

In a veiled attack on Anil Ambani group firm Reliance Communications and Tata Teleservices, the two dominant CDMA players, COAI said many of the start-up players were denied spectrum because of allocation of radio frequency for dual technology.

The government is in the process to offer one-time settlement to GSM players holding spectrum (radio frequency) beyond the contracted limit of 6.2 MHz and may impose a fixed charge as well as increase annual fee as percentage of gross revenue.

COAI said that the contention that spectrum is being "hoarded" by them is completely baseless, mischievous and misplaced. Hoarding implies that the product is bought and not used but kept aside for subsequent sale at a profit, neither of which is applicable in the present instance.

Additional spectrum is given only after fully justifying the requirement for the same, so the question of it not being used does not arise, COAI Director General T V Ramachandran said in the letter to the Prime Minister.

[Honest 836]

Take back excess spectrum or price them properly: AUSPI

17 Jul, 2008, 2125 hrs IST, PTI

NEW DELHI : CDMA operators on Thursday approached sectoral tribunal TDSAT, saying the spectrum held by the GSM players beyond the contracted limit should be priced appropriately.

According to sources, CDMA operators association AUSPI has said that the spectrum beyond 6.2 Mhz should be taken back or the government should charge appropriate price for the excess radio frequency.

The Department of Telecom is considering various models as part of one-time settlement to regularize the excess spectrum allotted to GSM operators by levying a fixed charge and also increasing the annual fee as percentage of gross revenue.

On other hand, GSM players on Thursday charged CDMA operators with hoarding of the spectrum under the dual technology licences.

"The charge of hoarding spectrum can actually be applied in respect of some dual spectrum allocations, where the recipient got 4.4 MHz spectrum on virtually all-India basis, in a selective and preferential manner," GSM players association COAI has said.

[Honest 836]

COAI hits back, dismisses excess spectrum charge as ‘baseless’

18 Jul, 2008, 0139 hrs IST, ET Bureau

NEW DELHI: After Samajwadi Party leader Amar Singh and CDMA operators’ body AUSPI, it’s the turn of GSM operators to lobby with the prime minister. The Cellular Operators’ Association of India (COAI), the GSM operators’ lobby, has written to the PM, saying allegations of GSM players holding excess spectrum were “completely baseless and incorrect”.

Mr Singh had earlier asked the prime minister that GSM operators be charged a one-time market fee for all the radio frequencies they hold over 6.2 MHz. The demand was forwarded to both the communication s and finance ministry by the PM’s Office (PMO).

In its letter, the GSM operators’ association, Cellular Operators’ Association of India (COAI), said, “The spectrum has been allocated under the guidelines framed as per terms and conditions laid down under licence. There has been no unauthorised allocation, as alleged... In fact the last order issued by the government in January 2008 stated that 15MHz is the “present upper limit for spectrum”.”

This comes at a time when AUSPI, which had written to the PM alleging hoarding of spectrum by the GSM operators, moved telecom tribunal TDSAT on Thursday asking that excess spectrum be taken back from GSM operators and they should be charged for using the excess spectrum. Meanwhile, COAI, responding to allegations of spectrum ‘hoarding’ by GSM players, said, “Additional spectrum is given only after fully justifying the requirement for the same so the question of it not being used does not arise.

Further, given that the operators are serving double the number of subscribers with only one fourth of the spectrum vis-à-vis their international counterparts, also belies this baseless and incorrect allegation.”

The association also took a dig at the CDMA operators who have received start-up GSM spectrum. “It may be pointed out that the charge of hoarding spectrum can actually be applied in respect of some dual spectrum allocations, where the recipient got 4.4MHz spectrum on virtually an all-India basis, in a selective and preferential manner, de-linked from all requirements of justification and need and at the cost of several new licences that were awarded recently,” COAI said in its letter.

The GSM operators’ body also asked the PM to ensure that any review of telecom licence condition should happen prospectively, and not retrospectively. “It would be extremely improper, incorrect and legally untenable for the policies of the government be re-written with retrospective effect,” it added.

[Honest 836]

'Frame long-term policies, auction spectrum'

19 Jul, 2008, 0225 hrs IST, ET

NEW DELHI: Confronted with a tax case on the acquisition of Hutchison Essar and also the possibility of the government imposing a one-time spectrum fee on GSM telcos who hold radio frequencies beyond the 6.2 MHz, Vodafone Group’s outgoing CEO, Arun Sarin, is learnt to have discussed these issues with finance minister P Chidambaram in Delhi on Friday.

Mr Sarin was escorted by MD of Vodafone Indian subsidiary Asim Ghosh and other officials.

While it could not be independently confirmed, industry sources say that Mr Sarin and the group’s incoming CEO Vittorio Calao were in India to hold talks with government officials on these issues.

Mr Sarin’s visit to the North Block assumes importance as the finance ministry favours imposing a fee of up to Rs 1,312 crore for every single MHz of radio frequencies that telcos hold over the 6.2 MHz limit.

GSM operators have strongly opposed the move, saying that the current spectrum allocation guidelines entitle them to up to 15 MHz of radio frequencies per circle. GSM operators, including Vodafone, have also sought the Prime Minister’s intervention in this issue.

At the same time, Vodafone also faces a tax demand in India, amounting to about $2 bn, in the wake of the $11-bn acquisition of Hutch-Essar from Hutchison International.

As reported earlier, Vodafone has already dragged the income tax department to the Bombay High Court claiming that the Indian tax authorities have no locus standi on a transaction that took place between two parties outside India.

Interacting with the media, Mr Sarin said that auction of radio frequencies was the best way to allot this scarce resource in India. He also called for long-term regulatory policies in India as telcos planned their businesses for long-term. When asked on his plans, Mr Sarin said that he would take a break immediately after his retirement on July 29 and head to the Himalayas. "I shall be going for trekking in Himalayas," he said.

Vodafone’s Indian operations rank fifth in both revenues and EBITDA after Germany, Italy, Spain and the UK. "But as far as Vodafone’s operations are concerned, India has been a very exciting market. When we started about 18 months ago, we just had 20 mn subscribers and today we have 50 mn and we are looking to achieve the 100 million mark very soon," Mr Sarin said.

When asked if any notable changes had taken place in India since its entry into the market, Mr Sarin acknowledged that things were different now while adding that he had expected the country to have long-term policies in place.

On the controversial issue of spectrum allocation to new entrants as well as CDMA players under the dual technology licence, Mr Sarin said that the country should have adopted an auction process as this would bring in the highest valuations for the government. On 3G, Mr Sarin termed this a ‘very interesting prospect for India’ and said that Vodafone would use its experience of 30 million 3G customers in Europe as it rolls out high-end services here.

Vittorio Calao, the incoming CEO who will be succeeding Mr Sarin, said he was excited about the company’s business opportunities in India.

[Honest 836]

Hike entry fee for a pan-India telecom licence too: TRAI

22 Jul, 2008, 0026 hrs IST, ET

NEW DELHI: Telecom regulator TRAI has told the department of telecom (DoT) that if the government wants to impose a one-time spectrum fee on all GSM operators who hold radio frequencies above 6.2 MHz, it should also hike the entry fee for a pan-India telecom licence.

The DoT had recently written to TRAI seeking its views on imposing a one-time spectrum fee on those telcos who hold over 6.2 MHz. CDMA-based operators have been demanding that GSM players be slapped with a one-time fee equivalent to the market rate since the licence entitled them to only 6.2 MHz of radio frequencies.

Trai, in its response to DoT, has remained silent on the one-time fee, but said that the issue cannot be looked at in isolation. It has suggested that the Rs 1,651-crore entry fee, which was fixed in 2001, also be hiked.

However, a TRAI source clarified the issues were not interlinked. “We are only reminding the significance of this to the government. If the government is hiking spectrum charges and imposing a one-time fee, they should also increase the entry fee. We want all hikes to be looked at in totality,” the TRAI official added.

“The Authority feels that as the DoT is revisiting the various levies being charged from the telcos, therefore it is appropriate time for the DoT to revise the entry fees of the different service areas also, so as to bring them in line with the present market realities. Presently, the entry fee for the UAS license in a service area varies from Rs 233 crore for Tamil Nadu to Rs 1 crore for West Bengal.

These entry fees have been determined on the basis of the price discovered in the bidding of the 4th CMSP licence in 2001,” TRAI said in its response to the DoT. The regulator also added that an isolated or piecemeal hikes with a view to mopping up additional revenue may hurt the growth of infrastructure and in the long run the telecom sector itself.

[Honest 836]

All additional spectrum allocation as per law: COAI

23 Jul, 2008, 1757 hrs IST, PTI

NEW DELHI: The war of words between GSM and CDMA operators continues unabated with GSM operators claiming that spectrum was allocated to them as per the law and accused their rivals of misinterpreting the licence terms.

The GSM cellular operators association COAI today lashed out at CDMA operators' body AUSPI saying all the allocation of 2G radio waves to GSM players have been made as per law.

COAI Director General T V Ramachandran said, "The licence terms had been acted upon by successive governments and administrations and guidelines had been issued from time-to- time providing for allocation of additional spectrum to GSM operators to meet their growth requirements".

These allocations had been made as per the laws of the land through government orders that were notified openly, followed equally for all operators and had worked successfully, he added.

He said claims of CDMA operators were anchored on entirely baseless assumptions and willful misinterpretation of licence terms.

The licence terms clearly prescribed in a number of places that additional spectrum would be allocated as per guidelines issued by the Department of Telecom (DoT) from time-to-time and that such allocations would be based on the principles of usage, justification and availability.

"The CDMA operators were deliberately choosing to misread one phrase in one clause of licence which said that not more than 6.2MHz would be given to a new licensee", COAI said in a release issued here.

[Honest 836]

Excess spectrum charge: COAI hits out at CDMA companies

24 Jul, 2008, 0119 hrs IST, ET Bureau

The GSM operators on Wednesday hit out at CDMA companies for demanding that the former be charged market rates for all radio frequencies they hold over the 6.2 MHz limit.

The Cellular Operators Association of India on Wednesday said that ‘licence terms have been outlined by successive governments over a decade ago and the allegation of CDMA stakeholders tantamounts to raising fingers at every government and administration over the last decade and accusing them of acting in an extra-constitutional and unauthorised manner’.

Last week, following Samajwadi Party leader Amar Singh’s demands that GSM players be charged for ‘extra spectrum, the COAI written to the prime minister saying that allegations of GSM players holding excess spectrum were “completely baseless and incorrect”. These developments come even as the Association of Unified Service Providers of India (AUSPI), the CDMA body, has moved TDSAT asking that excess spectrum be taken back from GSM operators.

While at the same adding that GSM players be charged for using the excess spectrum.

[Honest 836]

DoT, TRAI clash on licence renewal fee for operators

28 Jul, 2008, 0324 hrs IST, ET Bureau

NEW DELHI: The Department of Telecom (DoT) and sector regulator TRAI are at loggerheads again. This time, the issue is about extending the licence tenure of existing service providers. The licences of most operators are set to expire in the next few years. While DoT has proposed that an existing operator should pay Rs 825 crore for a ten-year extension, TRAI has rejected this and wants the licence to be extended without any fee.

With the government set to unveil the policy for third-generation (3G) services, the DoT had worked out a formula to calculate the fee that existing 2G telcos will have to pay for extending their licences. The DoT has reasoned that licences of all existing players will have to be extended.

This is because following the auction of 3G spectrum, successful bidders — both existing operators and new entrants including international communication majors — will be given these radio frequencies for a period of 20 years. But, the licences of all existing 2G players — which were given in the 90s for a 20-year period — are set to expire over the next couple of years.

The DoT feels ‘since the licences of existing operators would expire on different dates before the end of the 20-year period of 3G spectrum allocation, they would not be allowed to use the third generation frequencies for the full tenure’.

“To extend a level-playing field amongst the existing operators and the new entrants, it is necessary to have a provision to extend the licence period of winning bidders from amongst existing operators to make it co-terminus with the period of 3G spectrum allocation,” the DoT proposal said.

Under this proposal, if a telco needs to extend its licence by 10 years, it would have to pay about Rs 825.5 crore. This fee is calculated as follows: The entry fee of Rs 1,651 crore multiplied by 10 (the number of years for which the licence needs to be extended), and the total is divided by 20 (the number of years for which the telco can use the 3G spectrum). The DoT is of the view the government can garner an additional Rs 3,000 crore by extending the licences of existing players.

The DoT had on July 1 sought TrAI’S approval to implement this formula. TRAI, however, feels the ‘renewal of licence should be automatic unless extreme conditions of national security warrant otherwise’. TRAI has told the DoT it should not impose any fee on telcos.

In its reply to the DoT last week, TRAI has acknowledged that the ‘government had the powers to impose renewal fees at any time’, but it added any such move would be a violation of the current licencing conditions. “The renewal of licence should not be linked with auction of spectrum for 3G. At present, the government is thinking of auction of spectrum for 3G, while in the future some more spectrum may have to be auctioned for telecom services which would again necessitate extension of some licences, if this practice is followed,” Trai added.

[Honest 836]

COAI demands early final hearing in TDSAT on dual technology

29 Jul, 2008, 1436 hrs IST, ET

NEW DELHI: Opposing the allocation of dual spectrum to Reliance Communication and others, GSM players on Tuesday asked the sector tribunal TDSAT for an early final hearing, saying further delay would cost them dearly.

TDSAT, which is functioning at full strength with two members joining Chairman Justice Arun Kumar, has sought details from the government about the current status of the policy before starting examination of facts and adjourned the case till August 19.

"This would be a death for us by default," submitted Abhishek Manu Singhvi, senior advocate appearing for Cellular Operators Association of India (COAI).

He also added that the Delhi High Court, where the same issue has been challenged in the form of a writ petition, has reserved its judgement for the last six months.

Meanwhile, the TDSAT has directed the government to file an affidavit on recent developments in its policy over allocation of additional spectrum and crossover technology.

In October last year, the government had allowed dual technology for offering mobile services, under which CDMA operators like Reliance Communications, Tata Teleservices and others were allocated GSM spectrum.

TDSAT Chairman asked the Department of Telecom to file an affidavit by August 18 before it, mentioning all details about the spectrum allocation and change in policy since October 2007, when it was challenged by GSM lobby group COAI.

"Since the filing of this petition there has been developments after government's policy regarding allocation of spectrum, which is an issue in this petition... government will file an affidavit by August 18," said Justice Kumar, who was assisted by two newly joined members J S Sarma and G D Gaiha.

[Honest 836]

CDMA players want one time spectrum levy on GSM peers

Business Line

New Delhi, July 28 The CDMA operators have proposed that the Government should levy an one-time fee on cellular operators holding excess spectrum.

In a letter to the Prime Minister, the Association of Unified Service Providers of India said that this will bring revenues of nearly Rs 10,000 crore to the national exchequer.

The CDMA operators’ proposal is in line with the suggestion made by the Samajwadi Party leader, Mr Amar Singh.

AUSPI’s letter comes in the wake of a communication by the GSM operators to the Prime Minsiter opposing any move to impose a fee on operators holding more than 6.2 Mhz.

The GSM operators argued that the cap of 6.2 Mhz was applicable only for new players for receiving initial start-up spectrum. They said that the cellular licence had made provision for further allocation as the operator’s subscriber base grows.

In response, AUSPI has told the Prime Minister that the Cellular Operators Association’s letter was “a blatant attempt to promote narrow vested interests of a section of the telecom industry in India at the cost of just and legitimate accruals to the national exchequer.”

AUSPI has also filed an appeal with the telecom tribunal on this issue. “The fundamental issue which is being sidetracked is the issue of charging one time payment for excess spectrum, which has been given to a few selected GSM operators in the past, in violation of the license conditions,” AUSPI said in its letter to the Prime Minister

While COAI had said that GSM operators had not got spectrum for free since they were paying annual charges, AUSPI said that the issue of one time fee for additional allocation of spectrum and spectrum usage charge were two different things.

AUSPI has recommended to the Government to levy a charge of Rs 1,300 crore for each Mhz beyond the 6.2 Mhz cap. Operators including Bharti Airtel and Vodafone have 10-12 Mhz in some circles and if the AUSPI proposal is accepted then they will have to cough out a few thousand crores.

[Honest 836]

TDSAT asks govt to give details of spectrum allotment policy

30 Jul, 2008, 0039 hrs IST, ET Bureau

NEW DELHI: GSM players on Tuesday asked telecom tribunal TDSAT for an early final hearing on the allocation of dual spectrum to Reliance Communication, Tata Teleservices and other operators, and said any further dearly would cost them ‘dearly’.

“This would be a death for us by default,” submitted Abhishek Manu Singhvi, who was appearing for Cellular Operators Association of India (COAI), the body representing all GSM players. Mr Singhvi added that the Delhi High Court, which has also been hearing the government’s move to award dual licences, has reserved its judgment on this issue for the last six months. Last year, the COAI had challenged the DoT’s move to allow telcos to offer services using dual technology — offer both GSM and CDMA-based services on the same platform.

Following the COAI plea, the tribunal sought details from the government about the current status of the spectrum allocation policy and adjourned the case till August 19. “Since the filing of this petition (by COAI) there have been developments on the government’s policy regarding allocation of spectrum, which is an issue in this petition... government will file an affidavit by August 18,” TDSAT chairman Justice Arun Kumar said.

The tribunal on Tuesday also heard a petition by Tata Teleservices, which said that spectrum allotments for both GSM and CDMA should be treated at par in the ratio of 1:1. As per the existing spectrum policy, operators on the GSM technology are given twice the amount of spectrum compared to CDMA players as the latter is a more spectrum-efficient technology.

The department of telecom guidelines entitle GSM operators to a maximum of 15 MHz per circle, while for CDMA operators, it is 7.5 MHz per circle. In this case, the government has not yet filed the reply. After hearing the Tata’s counsel, TDSAT ordered the government to file its reply within four weeks and listed the case for hearing on September 17.

[Honest 836]

COAI requests HC to pass order on dual tech, extra spectrum

12 Aug, 2008, 2031 hrs IST, PTI

NEW DELHI: GSM operators lobby COAI on Tuesday approached the Delhi High Court, second time in last 12 days, requesting to pass its verdict over a petition filed by it challenging dual technology regime and allocation of additional spectrum.

This is the second time when the GSM lobby group COAI has approached the High Court to pass order in this case after a single member bench of Justice Gita Mittal had reserved its judgment on February 28 after hearing the case.

Talking to PTI, COAI Director General T V Ramachandran said that Justice Gita Mittal assured it to pass order in the next two days.

Earlier, On July 31 when the COAI had mentioned for passing judgment in this case, Justice Mittal had assured that she would pass order by August 7.

However, today COAI again mentioned it before Justice Mittal as the order was not delivered.

In their petition, COAI had requested the court to quash DoT's October 18 and 19, 2007 decisions to permit the use of dual technology and regulator TRAI's recommendation of enhanced subscriber-linked criterion for allocation of additional spectrum.

They had named CDMA operators Reliance Communication Ltd, Tata Teleservices, HFCL and TRAI as parties to the case.

In their petition, Cellular operators' Association of India had also requested the High Court to direct the sectoral tribunal TDSAT to pass an interim order on this issue.

The Telecom Disputes Settlement and Appellate Tribunal had on December 12 declined to stay the process of issuance of spectrum dual technology regime.

[vmsanghrajka 0]

Ha ha.. GSM operators are getting desperate and frustrated by the day.. The news of Reliance GSM soft launch in Delhi is giving them sleepless nights, hence these anti-consumer move to oppose their entry.. Vodafone and Airtel have formed a 'cartel' and seem to be working together to loot the Indian consumer.. Shame on them!!

[raccoon 53]

Why pick only on Airtel and Voda? All of them loot. And RCom is the biggest looter...

Established players will always oppose any threat to their business. Its upto regulating bodies, etc., to break monopolies and cartels as they emerge...

[Honest 836]

DoT turns down Amar Singh's demand on spectrum charge

14 Aug, 2008, 0305 hrs IST, ET

KOLKATA/NEW DELHI: The department of telecommunications (DoT) has shot down Samajwadi Party general secretary Amar Singh’s demand to the Prime Minister’s Office that GSM players be charged a one-time spectrum charge for all radio frequencies they hold beyond 6.2 MHz. ET has learnt that DoT, in its reply, has told the PMO that it cannot adopt Mr Singh’s suggested methodology of computing the one-time spectrum levy payable by GSM players and also the quantum of additional levy on recurring spectrum usage charges.

The move comes as a major relief to GSM operators as any move to impose a one-time fee would instantly hurt the commercial interests of established GSM heavyweights like Bharti Airtel, Vodafone Essar, Idea and Aircel. As per Mr Singh’s formula, several leading GSM players will have to cough up an additional Rs 3,000 crore as some telcos hold up to 10 MHz of radio frequencies. Significantly, DoT believes any decision to compute such a one-time spectrum charge using Mr Singh’s formula could land the government in court.

Incidentally, Mr Singh demand’s closely resembled an identical request last year by Reliance Communications chairman Anil Ambani who too had written to the PMO. In his July communique to the PMO, Mr Singh had proposed an additional fee of Rs 1,312 crore should be applied for all spectrum GSM players held above the 6.2 MHz mark. His logic: Indian telecom licence entitles GSM players to only 6.2 MHz of spectrum. Mr Singh had adopted the model that was worked out by the finance ministry to arrive at the Rs 1,312 crore.

The DoT’s decision to turn down the SP’s proposals will be a major blow for CDMA-based operators. This is because, CDMA operators share the view that GSM players have been given radio frequencies beyond their licence limits. So far, despite approaching several courts, CDMA players have failed to reverse the DoT’s policies which gives up to 15 MHz of spectrum to GSM operators in a circle.

[Honest 836]

DoT seeks PMOs nod to raise 2G spectrum usage charges for telcos

15 Aug, 2008, 0000 hrs IST, ET

KOLKATA/NEW DELHI: Telcos will soon have to shell out more for holding second-generation (2G) spectrum. The department of telecommunications (DoT) has sought approval of the Prime Minister’s Office (PMO) to raise 2G spectrum usage charges for all telcos. The department’s proposal is backed by telecom regulator TRAI.

Currently, all mobile services in the country are offered on 2G frequencies and telecom operators pay 2-6% of their annual gross revenue (AGR), depending on the amount of spectrum they hold, as usage charges to the government.

The DoT move implies that all telcos will have to pay higher spectrum usage charges, irrespective of the quantity they hold.

This differs from its earlier plan to increase spectrum charges only for those telcos who hold over 6.2 MHz per circle in case of GSM players and above 5 MHz for CDMA. The DoT has now told the PMO that it cannot increase spectrum charges only for operators holding more than 6.2 MHz of spectrum.

Its rationale—only large GSM players and state-owned telcos BSNL and MTNL hold radio frequencies above 6.2 MHz and increasing the charges only for these operators would be a discriminatory and lopsided move. No CDMA operator holds more than 5 MHz of radio frequencies.

Telecom regulator Trai had recommended that the government increase spectrum charges by 1% only for telcos who hold radio frequencies beyond 6.2 MHz. However, DoT’s proposal will see a 1% increase in spectrum usage charges for upto 6.2 MHz for GSM and 5 MHz for CDMA. Beyond these limits, the DoT has prescribed a 2% increase in spectrum charges. DoT has told the PMO that it has Trai’s approval for its recommendations.

In its communiqué to the PMO, the DoT has noted: “We are suggesting an across-the-board rise of 1% of AGR along with the introduction of a new spectrum slab of 8 MHz. Effectively, it will mean a 1% increase for spectrum allocations upto 6.2 Mhz and 2% beyond that compared to existing rates. Trai has agreed with the current DoT proposal on spectrum usage charges.”

Justifying the move to increase spectrum charges for all operators, the DoT said: “Over 60% of the current revenue is provided by spectrum range up to 6.2 MHz. (This is because, most players hold less than 6.2 MHz spectrum per circle and even large players have radio frequencies beyond this mark only in select circles). Accordingly, if this range is not included in the revision of spectrum usage charges, the overall contribution from the rate increase would appear lopsided and unfair.”

The DoT has said that as per its estimates, the government is slated to earn about Rs 3,812 crore as spectrum usage charges in 2008-09. Touching on the impact of the decision, DoT notes: “The estimation of the impact of the 1% rise in 4.4 MHz spectrum indicates an average increase of Rs 1 crore for every Rs 100 crore that the operator earns. This is very significant as the revenues of operators are increasing.”

Currently, a GSM operator holding 4.4 MHz of spectrum and a CDMA player with 2.5 MHz pay 2% of their AGR as spectrum usage charges. For GSM players holding 6.2 MHz and CDMA operators with 5 MHz of spectrum, the usage charges stand at 3% of AGR. The DoT has sought approval to increase these charges by 1%.

[Honest 836]

Hike in spectrum usage charges on anvil

17 Aug, 2008, 1957 hrs IST, PTI

NEW DELHI : The Department of Telecom is likely to give a go-ahead to the proposed hike in spectrum usage charge by one to two per cent, across the slab, in the next meeting of its policy making wing, Telecom Commission.

As and when it happens, the increase will fetch additional revenue to the Government.

Official sources said the matter was listed for consideration of the Telecom Commission last month but could not be taken up as 3G policy was to be discussed threadbare, leaving little time for this issue.

One issue that was approved by the Commission in July meeting was the removal of fixed line revenue from the calculation of Adjusted Gross Revenue.

Telecom Regulator TRAI has already approved the proposal for the government's consideration.

At present, all mobile operators pay 2-6 per cent of their annual revenues, depending on the amount of spectrum they hold, as usage charges to the government.

The DoT move implies that all telcos will have to pay higher spectrum usage charges, irrespective of the quantity they hold.

[Honest 836]

DoT refutes COAI charge; spectrum allotted in orderly manner

18 Aug, 2008, 2044 hrs IST, PTI

NEW DELHI: Refuting GSM players' allegation that policy of dual technology has eaten into their quota of additional spectrum, the government today asserted that the air waves have been allocated in an orderly manner and the needs of existing players have been addressed ahead of others.

In an affidavit filed before telecom tribunal TDSAT, the Department of Telecom (DoT) placed the actual position of spectrum allocated to leading GSM operators, including Bharti Airtel, Vodafone and Idea Cellular, since October 23, 2007 when the COAI challenged the government's new policy.

According to DoT, Bharti has been allocated additional spectrum in West Bengal, Assam, UP (West), twice in Tamil Nadu, Andhra Pradesh, Karnataka, and Vodafone was also allotted in West Bengal and Tamil Nadu.

Besides, Vodafone and Idea have also been allocated initial start-up spectrum in various circles. "The petition (by COAI) has been filed on October 23, 2007, upon misplaced apprehensions expressed by some quarters that all players in telecom industry would not be allotted spectrum in an orderly manner as per their respective entitlements," an 18-page affidavit filed by Goolam Vahanvati, Solicitor General of India, on behalf of DoT, said.

"It is submitted that the passage of events over the last few months, prove that available spectrum has been allotted in an orderly fashion and that the apprehensions expressed in the petition have proved to be unfounded," he said.

[Honest 836]

COAI pleads for an early hearing on spectrum issue

19 Aug, 2008, 1724 hrs IST, PTI

NEW DELHI: The GSM operators on Tuesday pleaded before the telecom tribunal TDSAT to start hearing at the earliest on their petition challenging government's decision to allow dual technology for offering mobile services.

The government had on Monday filed an affidavit refuting GSM operators' allegation that the policy of dual technology has eaten into their quota of additional spectrum and placed before the TDSAT actual allocation of airwaves made by the government to existing players in the last eight months.

After TDSAT directing the Cellular Operators Association of India (COAI) to file reply on government's affidavit, senior counsel Abhishek Manu Singhvi, appearing for GSM players, said the process of filing replies and rejoinders would delay the whole process and requested the tribunal to immediately start the hearing.

This was turned down by TDSAT Chairman Justice Arun Kumar saying "Why are you taking it so lightly. I do not like this casual approach." Justice Kumar asked COAI to file its reply by August 22 and also directed DoT to file rejoinder over it September 1 and fixed September 4 the next date for hearing.

Reacting to Singhvi's observation that there was unnecessary delay in hearing, government counsel Additional Solicitor General Vikas Singh said the matter would have been decided five month ago, if they (COAI) had not gone to the Delhi High Court on this issue.

On Monday, in an 18-page affidavit filed through Solicitor General of India Goolam Vahanvati, DoT had placed the actual position of spectrum allocated to leading GSM operators, including Bharti Airtel, Vodafone and Idea Cellular, since October 23, 2007 when the COAI challenged the government's new policy.

[Honest 836]

TDSAT asks telecom PSUs to file their replies by Aug 26

Press Trust Of India / New Delhi August 20, 2008, 18:30 IST

The telecom tribunal TDSAT has directed the state-controlled telecom firms BSNL and MTNL to submit their reply on the ongoing crossover spectrum matter by next week.

After finding that both PSUs have not filed their counter affidavits, the tribunal has suo motto listed the case today and directed their counsel to file their replies by August 26.

Meanwhile, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) also directed the GSM lobby COAI, which is the main petitioner in this case, to file its rejoinder over PSU's reply.

Justifying its decision to list the case for hearing, TDSAT Chairman Justice Arun Kumar said,"Yesterday it was noticed that Respondent no 6 (BSNL) and 7 (MTNL) had not filed their counter affidavit. This is an order to avoid any further delay in the final hearing," the bench said.

Other telecom companies including RCom, TTSL have already filed their replies on the matter.

The tribunal clearly indicated that they do not want any further adjournment in this much delayed case on account of non-submission on any document.

In this case, Cellular Operators Association of India (COAI) is insisting for an early hearing on the pretext that any delay would cost them dearly.

COAI has filed petition last October, challenging the new telecom policy which had approved allotment of GSM spectrum to their rival CDMA operators RCom and Tata Teleservices under cross-over technology regime.

DoT had on March 20, 2008 approved BSNL for usage of dual technology spectrum in 18 service areas along with MTNL on April, 7 for Delhi and Mumbai circles.

The tribunal has listed the matter on September 4 for hearing this matter.