Telecom space filled with calls for probes
GSM companies seek probe on CDMA entry into full mobility; CDMA players question spectrum for GSM.
By TNN |
NEW DELHI: The bitter war of words between GSM and CDMA players has taken a new dimension. GSM operators on Monday approached telecom minister A Raja demanding that the government reopen the case and probe the circumstances under which CDMA players were given the full mobility licence.
This comes even as CDMA operators have demanded that the government conduct a probe to establish as to how GSM players have been given additional spectrum “way beyond what is stipulated in the licence”.
While welcoming an ‘independent probe into the issue’, the Cellular Operators Association of India’s (the body representing all GSM players), in a letter to telecom minister A Raja said: “It is submitted that any probe on spectrum related issues (as demanded by CDMA lobby) should first examine the entry of CDMA operators into mobility services and also the aspect of morphing of WLL(M) into full-blown mobility.”
COAI has also rubbished the claims of their CDMA counterparts that GSM operators are not paying for the additional spectrum allotted to them and that there is a cap of 6.2 MHz spectrum for every GSM operators. At the same time, CDMA operators continue to maintain that as per the unified access service licence (UASL), each GSM operator is entitled to only 6.25 MHz of 2G spectrum and each CDMA operator up to 5 MHz for free, adding that further allocation of this resource must be priced. Going further, CDMA players also say that the Centre had lost about Rs 2,000 crore per GSM operator by not charging them an entry fee equivalent to market rates for additional spectrum.
COAI has also told Mr Raja that it was the CDMA operators who were getting additional spectrum for free: It should be noted that when the GSM operators move from 4.4 MHz (initial allotment) to 6.2 MHz and then on to 8 MHz, their spectrum usage charges go up from 2% to 3% and then 4% of total revenues. However, when the CDMA operators move from 2.5 MHz (their initial allotment) to 3.75 MHz and then to 5 MHz; their spectrum usage charges remain static at 2% of total revenues.”
COAI also told Mr Raja said that the claims made by CDMA players were baseless while adding that their shocking allegations tantamount to accusing the government of irregularities in the matter of spectrum allotment.
COAI has also argued that contrary to the allegations from the other camp, GSM players were paying a heavy charge for additional spectrum. “Based on actual data collected from some large operators and then pro-rating it for the entire GSM industry, it is estimated that the GSM industry has already paid over Rs 1,800 crore on account of above such additional allotments of spectrum,” the COAI had said in its earlier communication to Mr Raja.
This comes even as CDMA operators have demanded that the government conduct a probe to establish as to how GSM players have been given additional spectrum “way beyond what is stipulated in the licence”.
While welcoming an ‘independent probe into the issue’, the Cellular Operators Association of India’s (the body representing all GSM players), in a letter to telecom minister A Raja said: “It is submitted that any probe on spectrum related issues (as demanded by CDMA lobby) should first examine the entry of CDMA operators into mobility services and also the aspect of morphing of WLL(M) into full-blown mobility.”
COAI has also rubbished the claims of their CDMA counterparts that GSM operators are not paying for the additional spectrum allotted to them and that there is a cap of 6.2 MHz spectrum for every GSM operators. At the same time, CDMA operators continue to maintain that as per the unified access service licence (UASL), each GSM operator is entitled to only 6.25 MHz of 2G spectrum and each CDMA operator up to 5 MHz for free, adding that further allocation of this resource must be priced. Going further, CDMA players also say that the Centre had lost about Rs 2,000 crore per GSM operator by not charging them an entry fee equivalent to market rates for additional spectrum.
COAI has also told Mr Raja that it was the CDMA operators who were getting additional spectrum for free: It should be noted that when the GSM operators move from 4.4 MHz (initial allotment) to 6.2 MHz and then on to 8 MHz, their spectrum usage charges go up from 2% to 3% and then 4% of total revenues. However, when the CDMA operators move from 2.5 MHz (their initial allotment) to 3.75 MHz and then to 5 MHz; their spectrum usage charges remain static at 2% of total revenues.”
COAI also told Mr Raja said that the claims made by CDMA players were baseless while adding that their shocking allegations tantamount to accusing the government of irregularities in the matter of spectrum allotment.
ADVERTISEMENT
COAI has also argued that contrary to the allegations from the other camp, GSM players were paying a heavy charge for additional spectrum. “Based on actual data collected from some large operators and then pro-rating it for the entire GSM industry, it is estimated that the GSM industry has already paid over Rs 1,800 crore on account of above such additional allotments of spectrum,” the COAI had said in its earlier communication to Mr Raja.
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
