The Games Begin: Tata’s Want Changes In 2G Spectrum Allocation

The DoT hasn’t yet taken a decision on how it is going to allocate 3G spectrum, though it is keen on going through with TRAI’s recommendations. The first salvo on spectrum allocation, however, has already been fired – The Tata’s wrote to Communications Minister Dayanidhi Maran suggesting that while allocating spectrum for 3G services, operators should also be charged for additional allocation of spectrum for 2G services. Currently, the spectrum allocation is based on the operators subscriber base and operators are already struggling with scarce 2G spectrum.
The COAI, a body representing the GSM operators, has contested this, claiming in their letter to the Communications Minister that

“A player who is performing less and does not have the subscriber base cannot seek unjustified reservation of this precious resource at the expense of an operator who is performing and needs that spectrum to fuel his further growth”. The tit for tat continues, with the Tata’s defending their stance, claiming a 200% CAGR for as opposed to 70% CAGR among GSM operators.

Telecom Analyst Mahesh Uppal, however, argues in an article for Business Standard that GSM has a head start and the current policy of spectrum allocation on the basis of number of subscribers increases inefficiency of spectrum utilization since GSM is less efficient than CDMA. More here.
Related:
Spectrum Allocation For WiMax In India Questioned By WiMax Forum
TRAI To Recommend Auction For 3G In India
Is 3G worth it?

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