The Spectrum Tussle - Cdma V Gsm

[kshah 452]

I am sure, reliance will scr*w up GSM operators. Also new prices as well as teschnologically superior GSM network will be offered by reliance.

[kesav 127]

Tata Tele to file petition against DoT in TDSAT

Tata Teleservices will a file petition against the Department of Telecommunications, or DoT in TDSAT (Telecom Disputes Settlement And Appellate Tribunal) later today, CNBC-TV18 reports, quoting sources.

Tata Tele had applied for GSM spectrum for 20 circles, they add. The petition would be to challenge DoT's 2:1 spectrum allocation for CDMA operators, sources said.

They added that the petition to challenge GSM operators for spectrum in excess of 6.2 MHz. The petition would also ask DoT to continue processing CDMA applications, sources said.

source :: http://www.moneycontrol.com/india/news/bus...es/15/00/316614

[situ1962 21]

It seems the roll out of reliance gsm and 3g services will take more time than expected,considering the claims and counter claimi made by both the sides.even politicians have now jumped into the bandwagon.also the matter has been dragged to the court.the controversy doesn't seen to be ending soon.

[kesav 127]

Raja is rational and fair, Tata writes to DMK chief

“It is essential that history praises the vision, creativity and high growth achieved by you and your minister”

New Delhi, December 9: In the midst of the spectrum controversy, Union communications and IT minister A Raja has found an ally in Ratan Tata, chairman of the Tata Group. In a handwritten letter to Tamil Nadu chief minister and DMK leader M Karunanidhi, Tata has praised Raja’s “rational, fair and action-oriented” leadership. He even said the current controversy was created due to vested interests. One of Tata’s trusted executives personally delivered the letter to Karunanidhi.

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It may be recalled that Raja’s predecessor, Dayanidhi Maran, was charged with attempting to arm-twist the Tata Group to give an equity share in its direct-to-home (DTH) television venture to the Sun TV group — owned by Maran’s brother, Kalanidhi Maran. This also became an election issue in Tamil Nadu last year. Tata Teleservices, a Tata Group company, is a national CDMA telecom service provider.

“On the issue of spectrum, his stated policies, for the most part, have been legally sound, rational and well-reasoned. Part of the existing controversy revolves around one approval, which is being contested in the courts. In all other cases, his stated policies appear fair and he deserves everyone’s support,” wrote Tata. “It is essential that history praises the vision, creativity and high growth achieved by you and your minister. Our industry is in the viewing glare of the entire world. If done well, the DMK can possibly claim telecom to be its greatest achievement and most significant contribution to the nation’s growth,” according to Tata.

Blaming vested interests for creating the current controversy, Tata wrote, “This growth would need to come from rational and fair policies — without favourites and without pandering to vested interest groups who are only interested in themselves.”

“I have the highest regard and respect for you as a person of great equity and great vision. I would like to see you derive great kudos for the visionary growth of the sector, which I believe can be delivered under your leadership by Raja,” Tata wrote. He sent his trusted executive to personally carry this letter and explain “the public perceptions, the orchestrated misinformation and the vested interests that are seeking to de-rail the process of growth through technological and spectrum battles, rather than seeking national gain.”

The present controversy between CDMA and GSM players started when the Department of Telecommunications (DoT) allowed mobile service providers to expand their networks using alternate technologies. This implies that operators using CDMA technology for offering mobile services can provide GSM-based mobile services and vice-versa.

Another contentious issue between CDMA and GSM operators is a recommendation by telecom regulator Trai saying that the number of subscribers required by an operator for being eligible for additional spectrum should be increased. This was accepted by DoT. When GSM players opposed it, DoT set up a committee under the Telecom Engineering Centre (TEC), which is responsible for fixing standards, to give the final recommendations on spectrum allocation criteria. On October 31, the committee submitted its report to DoT, recommending more stringent conditions than those proposed by Trai. Now, DoT has set up another committee to review the subscriber criteria for allocation of spectrum.

source :: http://www.indianexpress.com/story/248496.html

This is called ultimate master stroke.

Why write to PM when demi-God is sitting in Chennai?

Who else can solve other than Demi-God?

When he can solve imbroglio between Left and Congress regarding nuclear deal, this(spectrum war) is trivial for Him.

[HetalDP 947]

Don't take numbers in absolute sense. $50 Mobile bill for an average America/European may be just 1/50th of their gross salary whereas Rs 500 for average Indians it is 1/5 - 1/10 of their salary. So purchasing power is more in Western countries while they spend more for more things while we spend less for lesser things!

Our data plans are more expensive and in other countries people get handsets at subsidized rates and sometimes they get two handsets for free etc…

Definately but everybody get Hardware Software and Equipment in Same Price even Spectrum in Cheaper in USA

[@ksh@T 20]

Idea offers to pay Rs 1,650 cr for additional spectrum

NEW DELHI: Demonstrating the divide among GSM mobile players for acquiring additional spectrum, AV Birla group firm Idea Cellular Ltd on Tuesday offered to pay Rs 1,650 crore for extra airwaves -- a sum that is far less than that proposed by bigger GSM operator Bharti Airtel.

In an offer made to the government, Idea Cellular sought additional 4.4 Mhz start-up spectrum that is equal to the "de-facto second licence" to rival CDMA operators. Although Idea did not name any competitor, Anil Ambani-led CDMA player Reliance Communications has paid Rs 1,651 crore and has been allowed to start GSM services in 14 telecom circles.

Idea's offer comes a day after Bharti Airtel, the country's biggest mobile operator, offered to pay Rs 2,650 crore for additional airwaves.

"We confirm our readiness to pay the matching amount of approximately Rs 1,650 crore on revenue share licence fee and other commercial terms exactly as decided for others," Idea Cellular managing director Sanjeev Aga wrote in a letter to telecom secretary D S Mathur.

"...This present offer should not limit us should the terms be amended, illustratively, if the price for the second spectrum stream is determined through an auction," he wrote.

Aga also said the company has been "long overdue" for spectrum allocation in 10 circles and for start-up frequency in Mumbai and Bihar, for which entry fee was paid in November 2006.

boss govt's gonna gain a lot from this fight

Govt discriminating against us: Idea Cellular

NEW DELHI: Idea Cellular Ltd on Tuesday accused the government with adopting a discriminatory attitude on allocation of spectrum that adversely impacted the company.

"We have expressed our chagrin at the discriminatory and arbitrary treatment meted out by the government in its actions as impacting our company," Idea managing director Sanjeev Aga wrote in a letter to telecom secretary D S Mathur.

He said Idea was the only large operator who has been deprived a nation-wide licensed footprint, which is essential to compete and to serve its 20 million subscribers.

"Successive government policies have facilitated a nation-wide licensed footprint for every other large operator, some of whom were not even mobile licensees to begin with," he added.

Charging the government with acting in bias against Idea, he said DoT did not act as per its own rules and should have issued the company its first license on the same terms as provided to other large operators.

"We are astonished that the government's pre-occupation and priority is the provision of, howsoever it may be labelled, a de-facto second license with a parallel GSM spectrum stream. Our prior applications for our first licenses lie unattended while second helpings are being prioritised."

Aga said having failed to obtain either fair play or adherence to its own policy from the government, "we have with regret been compelled to seek justice from the judiciary, a process which will run its due course".

aaj idea ki baari thi!

[@ksh@T 20]

Airtel bids Rs.26.5 billion for all-India spectrum

NEW DELHI: Upset over the way the government intends to allocate radio frequencies to CDMA operators, India's largest mobile telephony services firm Bharti Airtel offered Rs.26.5 billion to the department of telecommunications (DoT) for a pan-India spectrum.

"While we will continue to agitate, represent and follow up our legitimate legal options for our rightful entitlement of spectrum, we are compelled to seek an additional 4.4 Mhz, or any such start-up spectrum decided by the department, of pan-India GSM spectrum at par with the dual allocation as is being sought to be given to the CDMA operators," Akhil Gupta, joint managing director, Bharti Airtel, said in a letter to the DoT.

"Considering the urgency of the matter for us to attend to the quality of network needs of the customers both present and the massive future growth, we herewith offer a sum of Rs.2,650 crore (Rs.26.5 billion), which is approximately Rs.1,000 crore (Rs.10 billion) over and above the current charge of a pan-India start-up spectrum of Rs.1,650 crore (Rs.16.5 billion)," Gupta added.

Airtel, which in association the GSM body Cellular Operators Association of India (COAI), has also filed a petition against the DoT in the telecommunications tribunal, said: "This offer, therefore, must not be, in any manner, seen as a dilution of the legal process already followed by us and other operators to seek justice in respect of the rights bestowed upon us under the existing policy, rules and guidelines.

"We await the issuance of letter from the department for us to immediately make the payment and seek this additional spectrum allocation."

Gupta also reiterated that the delay in the allocation of spectrum by the government was hampering their services.

"The rightful and promised spectrum to the existing operators is being delayed or denied based on hyper technical parameters and erroneous calculations," Gupta said in his letter to DoT Secretary D.S. Mathur.

"This is further getting influenced by a scandalous campaign being launched by some CDMA operators with the sole intent of depriving the existing GSM operators of their legitimate spectrum needs," he said.

He also said an amicable solution to the entire spectrum tangle "seems unlikely and the issue is headed for a possible long litigation."

Bharti's spectrum offer anti-competitive: Tata

NEW DELHI: Tata Teleservices on Tuesday dubbed as "anti-competitive" the offer by Bharti Airtel to pay Rs 2,650 crore for spectrum, and said the proposal confirmed that the Sunil Mittal-led company was hoarding surplus airwaves.

"Bharti's offer wipes away all that they had been advocating as a principled stand," a TTSL spokesperson said. The GSM player's offer was due to "guilt conscious" and a "pittance against the gains that they make every year", the official said.

Bharti Airtel made the offer for all-India spectrum yesterday, and had evoked sharp criticism from rival Anil Ambani group firm Reliance Communications. Tata Teleservices and RCom are both CDMA players and opposing GSM-based service providers' contention on allocation of airwaves.

Reminding Mittal of the position he had taken earlier, Tatas said that "when Tatas offered to pay for 3G spectrum Sunil Bharti Mittal said the Prime Minister's Relief Fund was always available to anyone who wanted to donate money.

"The offer of Bharti now confirms that they have been hoarding spectrum beyond contracted amount and because of their guilt conscious, the said amount is now being offered as pittance against the gains that they make every year," the TTSL spokesperson said.

The CDMA camp has been demanding a level playing field with regard to allocation of spectrum in equal quantity and TTSL had earlier rejected the proposal made by Department of Telecom (DoT) on the ground that it talked about spectrum in ratio of 2:1 in favour of GSM players.

[Arun 795]

PM steps in battle for telecom giants for spectrum

CNN-IBN - Wednesday, Dec 12, 2007

The multi-crore telecom spectrum battle between India's corporate giants has taken a new turn with Prime Minister Manmohan Singh intervening in the ongoing allocation war.

On Wednesday, Singh said that spectrum should be allocated in a manner that there is no entry barrier for new comers. At the same time no hindrance should be created for existing CDMA players.

Prime Minister also clearly batted for auctioning for spectrum allocation saying it’s a medium of revenue generation for the government.

“The policy regime for making spectrum available should be transparent and equitable. It should not create entry barriers to the new comers or barriers to the continued growth of this important sector,” Singh said.

However, he expressed concern saying that the spectrum availability can be constrain for the growth of telecom sector in future.

Prime Minister said that the government has taken steps for vacating airwaves by the existing users.

He asked all the spectrum users to use this scare resource optimally "all technological options must be explored to maximise its utilisation."

The Department of Telecom (DoT) and the regulator have successfully enabled the rapid growth of this sector Singh said adding, "I believe that working closely with the independent statutory regulator, we can balance multiple objectives in a fair manner."

So far the DoT has not allowed spectrum to be auctioned, a decision, which has made GSM players in particular very upset.

The allocation of spectrum has pitted India's largest corporates against each other. On one side is the Anil Ambani owned Reliance Communication and on the other side are Sunil Mittal controlled Airtel and Ratan Tats'a Tata Indicom.

Demonstrating the divide among GSM mobile players for acquiring additional spectrum, AV Birla group firm Idea Cellular Ltd on Tuesday offered to pay Rs 1,650 crore for extra airwaves -- a sum that is far less than that proposed by bigger GSM operator Bharti Airtel.

In an offer made to the government, Idea Cellular sought additional 4.4 Mhz start-up spectrum that is equal to the "de-facto second licence" to rival CDMA operators. Although Idea did not name any competitor, Anil Ambani-led CDMA player Reliance Communications has paid Rs 1,651 crore and has been allowed to start GSM services in 14 telecom circles.

[KumaarShah 143]

There seems to be no end to which the GSM gangsters will stoop to, to prevent RCOM from starting their GSM services. They are **** scared of RCOM. It is evident from the way thing are going over the last 15 days or so.

My personal take on this is PM or no PM, this issue will go into the courts eventually and will be a very long process. So let us all stop dreaming of moving to RCOM GSM in the near future, at least. However eventually, RCOM will have its way, come whatever may.

[KumaarShah 143]

Govt to start spectrum allocation to new players; TDSAT okays

12 Dec, 2007, 1352 hrs IST, PTI

NEW DELHI: Setting at rest the controversy over allocation of spectrum, the government today said it would start apportioning air waves to new entrants including Reliance Communications under the dual technology clause - a process that the appellate telecom tribunal refused to stay.

The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) refused to stay the issuance of new licenses to those who had applied as of September 25. Only yesterday, the Department of Telecom had started the process.

Appearing for DoT, Solicitor General G E Vahanvati told TDSAT that the government would go ahead with the allotment of start-up spectrum to the new players. He also said that Tata Teleservices' application for use of cross-over technology would be considered favourably.

Just before the TDSAT ruling, Prime Minister Manmohan Singh had said that spectrum should be allocated in a transparent and equitable manner to new entrants for encouraging competitiveness.

"We are going to allot the start up spectrum... this would be maximum up to 6.2 Mhz," he said.

The move should help as many as 25 aspirants, including Unitech, Parsvnath, DLF, HFCL and Shyam Telecom, seeking to enter the lucrative GSM mobile services space.

On Cellular Operators Association of India's plea to stay the process of issuing new licenses TDSAT Chairman Arun Kumar said "This is matter of pubic policy. I would not decide, let the government decide on it."

The GSM lobby group also informed the tribunal that it has boycotted the committee formed by the DoT for reconsidering the Telecom Engineering Centre's report. NEW DELHI: TDSAT refuses to stay the process of issuing new licenses, allocation of spectrum.

Link http://economictimes.indiatimes.com/Govt_t...how/2616924.cms

So now, what happens? Will the COAI and the GSM gangsters go to court? Or will tehy allow RCOM and others to enter the GSM arena? Lets wait and watch.

Edited December 12, 2007 by KumaarShah

[KumaarShah 143]

Raja rules out auction of 2G spectrum to new players

12 Dec, 2007, 1500 hrs IST, PTI

NEW DELHI: Communications Minister A Raja on Wednesday ruled out auctioning 2G spectrum to the new players, so as to maintain level playing field between new and existing service providers.

"We cannot adopt auctioning route for existing 2G spectrum due to legal barriers. But for the next generation mobile services (3G), the government has already announced a policy that frequency will be allocated on the basis of auction," he said on the sidelines of India Telecom 2007 meet.

Suo moto bids by Bharti Airtel followed by Idea Cellular for 4.4 MHz additional spectrum had raised speculations that whether the government would consider this as a policy regime.

Bharti had offered Rs 2,650 crore reserving the right to increase the bid further, while Idea Cellular had written a letter to telecom secretary expressing its willingness to participate in the bidding process.

Raja has been maintaining that auctioning of 2G spectrum would create a level playing field in favour of existing GSM operators and thus any such decision may not stand legal scrutiny.

The minister said spectrum needs to be allocated on the basis of real competition and in a transparent manner.

When asked how the government would generate revenues as pointed out by Prime Minister Manmohan Singh, the minister said, "We already have annual license fee based on percentage of Adjusted Gross Revenue (AGR) and we are also going to auction spectrum for 3G services."

Link: http://economictimes.indiatimes.com/News/N...how/2617052.cms

[Honest 836]

So now, what happens? Will the COAI and the GSM gangsters go to court? Or will they allow RCOM and others to enter the GSM arena? Lets wait and watch.

@KumaarShah

My dear friend, in my point of view the GSM gansters must surrender among RCOM and others. Going to courts will not help them much. At last they have to welcome the new players.

Regards.

[Chirag Thakkar 4]

TDSAT turns down COAI plea against grant of new licences

13 Dec, 2007, 0157 hrs IST, TNN

Write to Editor

NEW DELHI: In a blow to leading GSM players, the telecom tribunal on Wednesday refused to grant a stay on a petition filed by the Cellular Operators Association of India against allocation of new licences. This paves the way for the Department of Telecom (DoT) to go ahead with the process of awarding Letters of Intent, followed by licences and spectrum to new entrants.

Appearing on behalf of the DoT, Solicitor General G E Vahanvati told tribunal that the government would allot start-up spectrum up to a maximum of 6.2 MHz (per circle) to the new players, which includes CDMA players, who have applied for GSM spectrum. This implies, licences and spectrum will be allotted as per the existing policy on a first-come-first-served basis. Besides, Mr Vahanvati’s statement also indicates that the government does not favour the auction of 2G spectrum as demanded by leading GSM players.

Meanwhile, the issue is far from over as industry sources said that GSM mobile operators were exploring the possibility of approaching Delhi High Court against telecom tribunal TDSAT’s decision not to stay government’s process for issuing new licences. TDSAT chairman Arun Kumar said: “This is matter of pubic policy. I would not decide, let the government decide on it.” The tribunal will next hear the COAI petition challenging the new subscriber-linked spectrum allocation norms on January 9.

Meanwhile, in a related development, two regional CDMA players — HFCL in Punjab and Shyam Telecom in Rajasthan — deposited the licence fee for launching operations on GSM platform. The move follows the government’s approval to the use of dual technology, under which operators can offer services on both GSM and CDMA technology platforms. HFCL deposited Rs 151.75 crore for Punjab circle, while Shyam paid up Rs 32 crore as licence fees for the Rajasthan circle.

As reported first by ET, the DoT is close to awarding LoIs to 22 companies who have submitted their applications before the September 25. With the tribunal refusing to intervene, the DoT is expected to issue the LoIs by the week-end.

Importantly, under the existing first-come-first-serve policy, three existing operators—Idea, Aircel and Vodafone—which have already been allotted licences but are awaiting spectrum to launch services, will be placed ahead of these 16 companies in the queue for spectrum. Idea is awaiting spectrum in 2 circles, Aircel in 7 and Vodafone in 6. Once the LoIs are issued, each company will have to pay a Rs 1,651-crore licence fee for a pan-India licence (less if it has applied only for some circles), and wait in queue for spectrum, which will be allotted once the defence forces vacate a part of their spectrum.

Source ET:

http://economictimes.indiatimes.com/News/N...how/2618426.cms

[kesav 127]

This shouldn't be the end of battle.....

Certainly Reliance has got the spectrum now......Possibly TATA may also get the spectrum.......

With due credits to them, I expect them to change sides and shift goal-post once they're allocated spectrum. I'm may be cynical.

Then it would be high-profile somersault ever seen in the business parlance.

The battle should not stop till all the excess spectrum hold by the GSM gansters are returned back.

The battle is for national resource.

The battle is for deploying more spectrum efficient technologies.

The battle is for more new players and for more competition.

Battle is still far from over.

[situ1962 21]

That's rightly said.unless all are forced to surrender the excess spectrum held by them,the fight must in on.otherwise these greedy people will not spend anything to upgrade their vintage technology.they must be brought to their knees.they are thinking that they can eat the able and have it too.

[HetalDP 947]

What ever the the Matter CDMA have taken least Spectrum @ around 4 slot of 1.25 Mhz. against GSM Lobby which have taken Double of That.

Means ALL CDMA People will get GSM Spectrum for Sure and Offcoure Reliance and Tata are first in India to get Universal Service Licence.

[@ksh@T 20]

Govt rejects Airtel, Idea's offer to pay for spectrum

NEW DELHI: The government on Thursdqay rejected the offers of mobile operators Bharti Airtel and Idea Cellular to pay money for additional spectrum, saying the companies cannot submit the amount unless it was asked for.

"How can you offer the money when there is no order?" Communications Minister A Raja told reporters when asked about the proposals by GSM-based mobile players Bharti Airtel and Idea for paying money to get additional airwaves.

Sunil Mittal-led Bharti Airtel, the country's biggest mobile operator, had offered to pay Rs 2,650 crore as "initial bid", while rival GSM service provider Idea had proposed to submit Rs 1,651 crore for getting the frequency.

Raja had yesterday also made it clear that spectrum for second generation (2G) services would not be auctioned.

[FEVIN-RAJ 61]

Finance Ministry objects to dual tech mobile licences

Wants process halted; DoT asked to explain the criteria for fee fixed

R.K. Radhakrishnan

Chennai, Dec. 13 The Union Finance Ministry has written to the Department of Telecommunications asking it to “stay” the implementation of the grant of crossover licences for CDMA operators to commence GSM operations.

The November 22 letter written by Mr D. Subbarao, Finance Secretary, to Mr D.S. Mathur, Secretary, Department of Telecommunications, states that in the presentation on the spectrum policy to the Cabinet Secretary on November 20, Mr Mathur had mentioned that three CDMA operators were given crossover licence for GSM operations; that the fee for this licence was determined as Rs 1,600 crore and that one licensee had already paid the fee.

“The purpose of this letter is to confirm if proper procedure has been followed with regard to financial diligence. In particular, it is not clear how the rate of Rs 1,600 crore, determined as far back as in 2001, has been applied for a licence given in 2007 without any indexation, let alone current valuation. Moreover, in view of the financial implications, the Ministry of Finance should have been consulted in the matter before you had finalised the decision. I request you to kindly review the matter and revert to us as early as possible with responses to the above issues. Meanwhile, all further action to implement the above licences may please be stayed,” the letter says.

It also sought details of permission granted and the dates on which such permissions were granted to CDMA operators.

Thomas K. Thomas from New Delhi adds: When contacted, DoT officials said that the issue of crossover technology was sub-judice and all future decisions of the Government would depend on the judgment of the Telecom Dispute Settlement Appellate Tribunal. GSM operators including Bharti Airtel, Vodafone Essar and Idea Cellular have challenged DoT’s decision to allow dual technology to Reliance Communications. Their primary contention is that the DoT did not follow the right process in permitting RCOM to foray into the GSM segment. Three other companies, Shyam Telecom, HFCL and Tata Teleservices, have also applied for crossover licences.

Cos keen to bid

The Finance Ministry’s objections assume significance in the light of bids put in by various companies including Bharti Airtel, STel and Idea Cellular. All the three companies have offered to pay in excess of Rs 1,650 crore – the amount paid by Reliance Communications for taking crossover licence. While STel has offered to pay Rs 6,000 crore, Bharti has said that it was willing to participate in an auction with an initial bid of Rs 2650 crore.

The Prime Minister, Dr Manmohan Singh, has also said that the spectrum policy should not lose sight of the revenue earning potential to the Government. Dr Singh on Wednesday said that spectrum allocation should be fair, transparent, equitable and forward looking. However the Communications Ministry has maintained that though auction was a fair and transparent way to allocate spectrum, it would create legal barriers for new players.

Sources in the Communications Ministry pointed out that even the telecom regulator and the telecom commission had recommended allowing crossover technology. They also said that revenues would be generated through auction of 3G spectrum and by issuing licence to new players and therefore the concerns raised by the Finance Ministry were being addressed.

[kesav 127]

Finance Ministry seeks financial explanation on dual tech mobile licences

R.K. Radhakrishnan

Chennai, Dec. 13 The Union Finance Ministry has written to the Department of Telecommunications asking it to “stay” the implementation of the grant of crossover licences for CDMA operators to commence GSM operations.

The November 22 letter written by Mr D. Subbarao, Finance Secretary, to Mr D.S. Mathur, Secretary, Department of Telecommunications, states that in the presentation on the spectrum policy to the Cabinet Secretary on November 20, Mr Mathur had mentioned that three CDMA operators were given crossover licence for GSM operations; that the fee for this licence was determined as Rs 1,600 crore and that one licensee had already paid the fee.

“The purpose of this letter is to confirm if proper procedure has been followed with regard to financial diligence. In particular, it is not clear how the rate of Rs 1,600 crore, determined as far back as in 2001, has been applied for a licence given in 2007 without any indexation, let alone current valuation. Moreover, in view of the financial implications, the Ministry of Finance should have been consulted in the matter before you had finalised the decision. I request you to kindly review the matter and revert to us as early as possible with responses to the above issues. Meanwhile, all further action to implement the above licences may please be stayed,” the letter says.

It also sought details of permission granted and the dates on which such permissions were granted to CDMA operators.

Thomas K. Thomas from New Delhi adds: When contacted, DoT officials said that the issue of crossover technology was sub-judice and all future decisions of the Government would depend on the judgment of the Telecom Dispute Settlement Appellate Tribunal. GSM operators including Bharti Airtel, Vodafone Essar and Idea Cellular have challenged DoT’s decision to allow dual technology to Reliance Communications. Their primary contention is that the DoT did not follow the right process in permitting RCOM to foray into the GSM segment. Three other companies, Shyam Telecom, HFCL and Tata Teleservices, have also applied for crossover licences.

Cos keen to bid

The Finance Ministry’s objections assume significance in the light of bids put in by various companies including Bharti Airtel, STel and Idea Cellular. All the three companies have offered to pay in excess of Rs 1,650 crore – the amount paid by Reliance Communications for taking crossover licence. While STel has offered to pay Rs 6,000 crore, Bharti has said that it was willing to participate in an auction with an initial bid of Rs 2650 crore.

The Prime Minister, Dr Manmohan Singh, has also said that the spectrum policy should not lose sight of the revenue earning potential to the Government. Dr Singh on Wednesday said that spectrum allocation should be fair, transparent, equitable and forward looking. However the Communications Ministry has maintained that though auction was a fair and transparent way to allocate spectrum, it would create legal barriers for new players.

Sources in the Communications Ministry pointed out that even the telecom regulator and the telecom commission had recommended allowing crossover technology. They also said that revenues would be generated through auction of 3G spectrum and by issuing licence to new players and therefore the concerns raised by the Finance Ministry were being addressed.

source :: http://www.thehindubusinessline.com/2007/1...21452800100.htm

[kesav 127]

Separate spectrum fee for 2G entrants.

This move by DoT answers previous post's finance ministry concerns.

NEW DELHI: The government is set to fix a one-time entry fee for all new players who plan to offer second-generation (2G) mobile services in the country. This start-up fee, which is expected to run into a few thousand crores, will be besides the Rs 1,651 crore that all entrants have to pay for a pan-India 2G spectrum licence.

The department of telecom has already set up a committee to fix the fee for 2G spectrum entry, a DoT source told ET.

All mobile services in India are currently offered using 2G radio frequencies. Till date, a pan-India licence to offer 2G telecom services came bundled with 4.4 MHz of GSM spectrum. Here, service providers were only charged a percentage of their annual revenues as spectrum fee. Now, players who pay Rs 1,651 crore for the pan-India licence will also have to dish out this one-time spectrum fee before they are allocated radio frequencies.

Simply put, the licence will be delinked from spectrum and the existing fee of Rs 1,651 crore will be applicable only for the licence.

DoT has also decided that all existing operators will have to pay this start-up fee for additional spectrum proportionate to the quantum of extra frequency they get, a top DoT source said.

This start-up fee is likely to apply to all players who have sought licences from January 2007. This implies that all the 22 companies who are set to be issued Letters of Intent (LoIs) by DoT for launching mobile services will have to pay this start-up fee. Besides, players such as Reliance Communications, the Tatas and others who are looking to offer services on dual technology (GSM as well as rival CDMA technology) and are awaiting the allotment of GSM spectrum to begin services on this platform will also have to pay this fee.

However, DoT is yet to decide if players like Idea, Vodafone and Aircel, all of which had applied for spectrum before December 2006, and also hold licences, will have to pay this fee. Idea holds licences in 2 circles, Aircel in 7 and Vodafone in 6, but have not been allotted spectrum to begin services. The official said the prime minister was referring to this start-up fee when he said on Wednesday that the government must not lose sight of the revenue potential from this scarce resource.

source :: http://economictimes.indiatimes.com/News/N...how/2621165.cms

[kesav 127]

DoT commitee to tighten up the screw further than suggested by TEC.

Longer the delay, bigger the spectrum which GSM incumbents have to return.

DoT committee > TEC > TRAI

To submit report by this week end.

:clap:

Now DoT should not waste too much time in formulating modalities of returning excess spectrum.

They've to do it as quickly as possible.

New Delhi: The committee on spectrum set up by the Communications Ministry has observed that that the subscriber-based allocation norms suggested by the Telecom Engineering Centre were reasonable.

In fact, the panel has taken a view that the subscriber numbers could have been much higher if TEC had taken all the efficiency techniques into consideration.

“There is definite scope to enhance the existing criterion considerably. The numbers arrived by different assumptions could vary between those given by TRAI, TEC and even much higher than TEC. TEC’s arithmetic calculation is generally correct. The final numbers are being arrived at by the committee which listened to all,” said a DoT official.

The final report is yet to be submitted though it may have not impact on the spectrum dispute between operators as GSM mobile companies have dissociated themselves from the panel’s proceedings.

The panel was set up after GSM operators had expressed concern at the subscriber-based allocation suggested by TEC for additional spectrum.

source :: http://sify.com/finance/fullstory.php?id=14577550

[kesav 127]

Things getting murky.

The DoT committee has thrown back the ball again to Govt.

GSM gangsters seeing some light at the end of the tunnel. I sincerely hope that light to be the light of approaching train.

Here's the link to the report.

http://www.hindu.com/nic/spectrum.pdf

GSM players renew fight over spectrum

More than a week after the telecom dispute tribunal (TDSAT) refused to stay the process of allocation of spectrum to telecom operators under the "dual technology" category, GSM players Bharti, Vodafone Essar, Idea Cellular and Spice Telecom have decided to stay united and seek further legal recourse.

The Cellular Operators Association of India (COAI) on Thursday said its four members "have unitedly decided to approach the Delhi High Court in a writ petition" against the interim order issued by TDSAT on December 12.

COAI, representing the GSM players, had in November moved TDSAT against the government for allowing use of dual technology-CDMA players offering GSM service and vice versa. The association had sought a stay on grant of spectrum to CDMA player Reliance Communications for starting pan-India GSM operations.

Subsequently, a GSM member - Aircel (which has Malaysia's Maxis as the majority partner) - pulled out of the COAI petition. It is believed that Aircel did not want to get caught in a legal battle at a time when it was awaiting spectrum to start operations in several new circles.

Recently, after the TDSAT order of December 12, there was also speculation that Vodafone Essar and Idea Cellular may not like to challenge the tribunal's verdict in the HC, as these two players were keen too on starting services in new circles after getting start-up spectrum, rather than fighting legal battles. That would have left Bharti alone. However, a day after the spectrum allocation review committee asked the government to take an appropriate view on the issue, COAI members decided to stay united on the matter of challenging the TDSAT order. The association of GSM operators also said on Thursday that the spectrum review committee's report is a validation of the COAI view.

On Wednesday, the review committee, headed by additional secretary at the Department of Telecommunications (DoT) R Bandopadhyay, submitted a bulky report to the DoT but admitted that the panel was unable to reach a decision, due to sharp differences among its members, which included IIT professors and industry representatives besides ministry officials.

The review committee, whose mandate was to decide on the right subscriber-linked criteria for spectrum allocation, has now left the job to the government. The review committee was assessing the subscriber-linked spectrum allocation norms recommended by the Telecom Regulatory Authority of India (TRAI) and also by Telecom Engineering Centre (TEC), which is a technical wing of DoT. GSM operators have been opposed to the stringent subscriber-linked spectrum allocation norms, and COAI even pulled out from the Bandopadhyay committee later, saying that the panel was working towards a pre-determined result. Some members in the committee wanted GSM operators to follow the stricter TEC norms and favoured the less stringent TRAI criteria for the CDMA players, sources said.

Now, with the review committee leaving the spectrum allocation norm decision to the government, while recommending a combination of auction and subscriber-linked criteria, COAI sees in it a ray of hope, an industry source pointed out.

As reported earlier, GSM players Bharti and Idea wrote to the DoT secretary D S Mathur recently offering to pay Rs 2,600 crore and Rs 1,650 crore respectively as initial bid money for additional spectrum allocation. They were ready to offer more in case there was an auction. The trigger for this was Reliance Communications being allowed to offer GSM services under dual technology norms, after it paid Rs 1,650 crore for pan-India GSM services.

Currently, Rs 1,650 crore is the licence fee for pan-India mobile services, with which one gets a startup spectrum. There's no extra payment for spectrum allocation, apart from the revenue-share fee paid for spectrum usage by telcos.

DoT and the finance ministry had recently locked horns over the issue of licence fee of Rs 1,650 crore. While the finance ministry wanted to know why the old fee of Rs 1,650 crore was being charged to RCom under dual technology, DoT argued that the fee was as per a cabinet decision of 2003 and a recent TRAI recommendation. Even Prime Minister Manmohan Singh said that the government should not lose sight of revenue while allocating spectrum. Later, communications minister A Raja said that 2G spectrum cannot be auctioned as it would create "legal barriers". But it is learnt that a DoT committee is working out a mechanism to price spectrum. Meanwhile, COAI has said that the "non grant of a stay by the TDSAT will "create irreversible third-party rights".

source:: http://sify.com/finance/fullstory.php?id=14579267

[KumaarShah 143]

The GSM gangsters have decided to move the courts and this will ensure that the matter will drag on for atleast one or two years by which time, GSM gangsters etc will increase their market share manifold. Good move on GSM Gangsters part to stymie RCOM's plans. But eventually, there will be competition in GSM arena. I think now that the GSM gangsters have moved the courts, the Govt. should increase the pressure and make these operators return the excess spectrum lying with them immediately. Maybe RCOM will now move courts to ensure this as a tit for tat move.

The whole thing is getting murkier and murkier and will eventually be costly for everyone including us. ADA and all other new entrants will have to also shell out for new spectrum and which will cost thousands of crores. Their plans of going GSM for just Rs. 1651 crores have backfired royally. After paying for the licences and the spectrum, the new entrants will definitely be unable to reduce the tariffs. And on the other hand the GSM gangsters will have to surrender excess spectrum and they will also be forced to embrace newer technologies for efficient usage of spectrum and which will again cost them heavily. So they will also be unable to reduce tariffs. Eventually we users only will suffer.

This battle has not really helped Airtel & co. nor RCOM and co. Maybe they could have anticipated all these hitches and cobbled together some agreement which would have ensured that all operators get good market share. Instead of one-upmanship, this would have been better. Now everyone, including us,will suffer.

[Arun 795]

I don't think its going to materialize anywhere in the near future...

Freeze spectrum allocation till govt finds true value: Prime Minister's Offer.

22nd Dec, 2007 - Times News Network

The prime minister’s office (PMO) is learnt to have told the department of telecommunications (DoT) that the entire exercise of issuing start-up GSM spectrum to new entrants should be frozen till the government establishes the “true economic value of such spectrum in a fair, transparent and equitable manner”.

The PMO, it is learnt, has stressed that “the communications ministry needs to realise that radio spectrum is a finite and scarce national resource, which is why, all licences bundled with start-up spectrum, must be purely issued based on economic principles”.

The PMO’s intervention could hurt the GSM ambitions of CDMA operators Reliance Communications, Tatas, HFCL and Shyam Telecom, who want to offer services based on GSM technology. The PMO is said to be unhappy with the Union communications ministry’s handling of the protracted spectrum row, which shows no signs of an early resolution, sources added.

As of now a pan-India licence to offer 2G telecom services, which costs Rs 1,651 crore, comes bundled with 4.4 MHz of GSM spectrum. Service providers are only charged a separate fee for this initial spectrum, but are only mandated to pay a percentage of their annual revenues as spectrum fee.

While this could not be independently confirmed, it is understood, that the PMO is favourably disposed to the auctioning of 2G spectrum for both new entrants and existing GSM operators (read: Idea, Vodafone and Spice) whose applications for new licences/spectrum are languishing at the DoT for months. This can imply that the licence fee of Rs 1651 crore will not guarantee spectrum as telcos will have to bid for radio frequencies.

“The PMO is also aware that the telecom regulator TRAI, in its February 2003 recommendations, had suggested the bidding route for new licences that came bundled with spectrum, which effectively implies auctioning of 2G spectrum for new entrants, including CDMA players keen to enter the GSM club through the dual technology route,” a senior bureaucrat close to the developments told ET.

When contacted, a top DoT official said that the department had not received any directive from the PMO. The official added that the department had already constituted an internal committee to determine the economic value of the 4.4 MHz of start-up spectrum, which would be charged to all new entrants, in addition to the licence fee of Rs 1,651 crore.

“The committee will submit its report soon, possibly in the next one week,” the DoT source added. All existing operators who want additional spectrum will also be charged ‘the economic value’ for the quantum of extra frequency they get, a top DoT source had earlier told ET, while adding the prime minister was referring to this additional spectrum fee when he said that the government must not lose sight of the revenue potential from this scarce resource.

While the PMO has not named any specific company, it has indicated to the DoT that no future allocation of spectrum should be done in a way that subverts the system or robs the government of a substantial revenue opportunity. “Ideally, the DoT would do well to establish auction mechanisms for each spectrum band as there are several tried and tested auctioning formulae,” said a top government official close to the PMO.

[shashank 8]

Oh god! please throw all these officials in a gutter

They are fighting like dogs.

If TRAI says Yes, Dot says NO, If Dot says Yes, TRAI says NO! If TRAI and Dot Says YES,TDSAT says NO. If TRAI Dot & TDSAT says YES, Operators file a case in high court,If HC also says NO then a case in Supreme Court! Time taken from HC to SC is one year.

I was waiting for 3G from 2004.I hope atleast my children will be able to experience 3G(by then world will using 30G ).

Edited December 22, 2007 by shashank