Date:14/05/2005 URL: http://www.thehindu.com/2005/05/14/stories/2005051406451600.htm

Business

TRAI proposes lowering spectrum charges

Special Correspondent

Recommends constitution of a Group of Ministers

NEW DELHI: The Telecom Regulatory Authority of India (TRAI) on Friday recommended lowering the ceiling of annual spectrum charges payable by service providers to the Government from 6 to 4 per cent of annual gross revenue. It also recognised that the 1900 Mhz band cannot be vacated by the defence authorities and thus suggested that both CDMA and GSM opertors be allocated spectrum in IMT 2000 in 2GHz band.

To ensure availability of adequate spectrum to achieve the target of 200 million mobile subscribers by 2007, the telecom regulator has also "strongly recommended" immediate constitution of a group of ministers assisted by professionals from defence, the department of Telecom and TRAI to draw up a detailed programme and monitor its implementation. "This activity has to be taken up on a war footing to be able to meet the government objectives of growth", it has stated.

In a series of recommendations on spectrum-related issues issued here, TRAI has noted that the present level of spectrum allocated to mobile operators is much below the international averages and there is a need for immediate time bound action for making more spectrum available.

The two sets of operaters, GSM and CDMA, had urged that the 1900 Mhz band should be kept reserved for each of them to offer third generation (3G) mobile services. The CDMA-based service providers had noted that this band was needed for compatibility to equipment from overseas markets.

However, TRAI has stated that the US-PCS 1900 MHz band for CDMA operators cannot be vacated by defence, hence even CDMA services will have to be allocated spectrum in the 2 GHz band. The regulator has also stated that the spectrum allocation criterion for both GSM and CDMA operators may be revised within one month of acceptance of these recommendations in such a manner additional spectrum allocation and area of co-ordination are technology neutral.

At present, different criteria are being used for GSM and CDMA operators. It also said the spectrum constraints could partially be mitigated through introduction of services in IMT-2000 spectrum.

CorDECT spectrum

TRAI has recommended a technology neutral policy for allocation of additional spectrum for both GSM and CDMA operators. With a view to avoiding the hoarding of spectrum, TRAI said an additional annual spectrum charge on per MHz basis would be charged for IMT-2000 spectrum till the service provider rolls out such services. At the same time, if the rollout did not take place within two years from the date of allocation of spectrum, it said this allocation would be cancelled. Regarding trading in spectrum, the regulator said it was not possible at this stage, but depending upon market conditions the issue might be considered at a later stage through a consultation process.

Other recommendations include new operators should be allowed in areas where spectrum requirements of existing operators have been met and additional spectrum is available; CorDECT spectrum should be delinked from mobile spectrum and distributed rationally; and spectrum trading may be considered at a later stage through a consultation process.