Reliance soon to talk with Tatas on 3G spectrum issues

NEW DELHI: With their differences becoming wider throwing a larger question mark on their almost defunct association AUSPI, Reliance Communications is considering taking up the issues with the Tatas on what they say "advising them on the recent issues relating to 3G spectrum".

It is learnt that RCL is readying a communique to Tata Tele Services Ltd suggesting them to "interconnect with the Industry in order to participate in the harmonious growth of the Indian telecom sector and tune to the national teledensity targets of 500 mn subscribers by 2010".

The simmering rift was more prominent two days ago. On August 18 when TRAI had called for a meeting with both the associations AUSPI and COAI to discuss on 3G spectrum pricing and allocation issues, AUSPI did not turn up for the Gevent making it a one-sided discussion.

Both the companies under AUSPI Reliance Communications and Tatas were present in their individual capacity and made presentations as such.

TTSL had written to TRAI independently that 1900 Mhz be allotted to to CDMA players for 3G services besides seeking an entry fee for such service. Its group chief Ratan Tata had already suggested Rs 1500 crore entry fee for such services.

A spokesperson for RCL declined to comment on the issues regarding the serious rift between the two CDMA operators.

The communique is believed to have reiterated the economic modeling of the proposed entry fee structures that has been placed at AUSPI platform. "Its one and the same thing", said the source as to whether the issue could have been discussed under the aegis of AUSPI than writing to TTSL.

Reliance had earlier suggested a hybrid model and a graded fee structure aggregating to a sum of Rs 300 crore for a national 3G license.

The figure was arrived at citing the gross costs of Rs 1800 crore for refarming defense spectrum, that could be divided among operators who will go for 3G services, it said.

With seven national operators, the collection under this formula would be Rs 2100 crore. With reasonable entry fees, the operators would be able to deploy 3G networks faster thereby resulting in speedier penetration and availability, Reliance Communications officials had said.