Bharti biggest loser; to hit expansion plan

NEW DELHI: Even as Reliance Communication’s (RCoM’s) year-long wait for GSM spectrum looks set to end, department of telecom’s (DoT’s) move to tighten the subscriber-based spectrum allocation is likely to impact the expansion plans of India’s largest cellular operator Bharti Airtel.

The revised subscriber-based spectrum allocation will make it difficult for Bharti as well as other GSM operators such as Vodafone and Idea to get additional spectrum in their existing cricles. However, the other operators have at least something to cheer about.

DoT’s decision not to auction spectrum and follow the first-come-first-served norm will result in the other existing operators getting spectrum in circles where they are not present when the defence forces vacate about 20 MHz of GSM spectrum by the year end.

Bharti, on the other hand is present in all circles. So, what it wants is more spectrum in circles where it is present rather than fresh spectrum in new circles. But the tighter eligibility criteria spelt out by TRAI and now approved by DoT means that barring Delhi, its pending applications for additional spectrum will not make the cut.

It will, therefore, have to make heavy investment in technology, additional base stations and networks to sustain its growing subscriber base on the existing spectrum across the country. Not surprisingly, RCoM is the only telco that has welcomed the DoT’s move to enhance the subscriber base for allocation of additional spectrum.

“The acceptance by the DoT of TRAI’s recommendation of the enhanced subscriber-linked criteria for spectrum allocation will ensure the much-needed spectral efficiency and a greater competitive environment,” the company said in a statement.