DoT fails to strike deal with GSM cos
DoT on Monday failed to find a solution to the ongoing spectrum imbroglio as the meeting between the DoT secretary and the CEOs of all telecom companies ended on an inconclusive note yet again.
By TNN |
NEW DELHI:: DoT on Monday failed to find a solution to the ongoing spectrum imbroglio as the meeting between the DoT secretary and the CEOs of all telecom companies ended on an inconclusive note yet again.
This is because leading GSM operators such as Bharti Airtel, Vodafone Essar and Idea Cellular are learnt to have turned down the DoT offer to accept Trai’s recommendations on subscriber-linked spectrum allocation norms as an interim solution until the telecom tribunal takes a decision on this issue.
Trai had recommended that existing service providers increase their subscriber base between two to six times before being granted additional spectrum (radio frequencies on which mobile services operate).
This is far less stringent than the Telecom Engineering Centre’s recommendation that the subscriber density should be hiked 4-15 times. Sources said that GSM operators did not accept this formula as they had already challenged the Trai report in the telecom tribunal.
It is also learnt that leading GSM operators told the government that while they were willing to discuss a settlement towards dropping their objections to the DoT’s move to allow dual technology, they would however continue to oppose the process by which the department had allowed Reliance Communications to offer GSM services.
Sources said that leading GSM players pointed out to DoT secretary Mr Mathur that their objection was to the fact that the DoT, “on the basis of an application made around February 2006 (when such allotments were not permissible and thus such applications were illegal), issued an in-principle approval to RCOM on 18 October for dual technology and even allowed the latter to complete all formalities before announcing the policy” said a source associated with a GSM company.
They are also learnt to have told Mr Mathur the government could not make withdrawal of petitions in the telecom tribunal as a pre-condition for negotiations.
It must also be pointed out that while Bharti, Vodafone and Idea met the Mr Mathur together, some of the other GSM players like Aircel and Spice Telecom today met the Secretary separately thereby indicating a clear divide in the Cellular Operators Association of India. Sources also said that some of the telcos who are awaiting spectrum to start services in new circles, during Monday’s meet contended that they must be given 6.2 MHz of spectrum to start services as against the proposed 4.4 MHz.
Sources also added that RCOM chairman Anil Ambani told Mr Mathur that the DoT must demand the surrender of ‘excess’ spectrum from the existing GSM players.While adding that the existing GSM operators were demanding a dilution of the existing TEC report in order to ‘hoard’ more spectrum and limit the entry of new players.
Meanwhile in a related development, Social Action Forum for Manav Adhikar, an NGO, on Monday filed a petition in the Supreme Court questioning the government’s decision to allocate spectrum without inviting bids and holding a public auction. The petition contends that the government’s decision on October 19, this year to allocate spectrum under the existing policy would result in a loss of Rs 10,000 crore to the national exchequer.
This is because leading GSM operators such as Bharti Airtel, Vodafone Essar and Idea Cellular are learnt to have turned down the DoT offer to accept Trai’s recommendations on subscriber-linked spectrum allocation norms as an interim solution until the telecom tribunal takes a decision on this issue.
Trai had recommended that existing service providers increase their subscriber base between two to six times before being granted additional spectrum (radio frequencies on which mobile services operate).
This is far less stringent than the Telecom Engineering Centre’s recommendation that the subscriber density should be hiked 4-15 times. Sources said that GSM operators did not accept this formula as they had already challenged the Trai report in the telecom tribunal.
It is also learnt that leading GSM operators told the government that while they were willing to discuss a settlement towards dropping their objections to the DoT’s move to allow dual technology, they would however continue to oppose the process by which the department had allowed Reliance Communications to offer GSM services.
Sources said that leading GSM players pointed out to DoT secretary Mr Mathur that their objection was to the fact that the DoT, “on the basis of an application made around February 2006 (when such allotments were not permissible and thus such applications were illegal), issued an in-principle approval to RCOM on 18 October for dual technology and even allowed the latter to complete all formalities before announcing the policy” said a source associated with a GSM company.
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They are also learnt to have told Mr Mathur the government could not make withdrawal of petitions in the telecom tribunal as a pre-condition for negotiations.
It must also be pointed out that while Bharti, Vodafone and Idea met the Mr Mathur together, some of the other GSM players like Aircel and Spice Telecom today met the Secretary separately thereby indicating a clear divide in the Cellular Operators Association of India. Sources also said that some of the telcos who are awaiting spectrum to start services in new circles, during Monday’s meet contended that they must be given 6.2 MHz of spectrum to start services as against the proposed 4.4 MHz.
Sources also added that RCOM chairman Anil Ambani told Mr Mathur that the DoT must demand the surrender of ‘excess’ spectrum from the existing GSM players.While adding that the existing GSM operators were demanding a dilution of the existing TEC report in order to ‘hoard’ more spectrum and limit the entry of new players.
Meanwhile in a related development, Social Action Forum for Manav Adhikar, an NGO, on Monday filed a petition in the Supreme Court questioning the government’s decision to allocate spectrum without inviting bids and holding a public auction. The petition contends that the government’s decision on October 19, this year to allocate spectrum under the existing policy would result in a loss of Rs 10,000 crore to the national exchequer.
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