In the midst of tall claims of customer growth by one telecom operator after another, Tata group chief Ratan Tata has questioned allocation of spectrum based on subscriber and technology without having a defined policy, an issue that the telecom ministry is now examining.
"The DoT Order prescribes stand-alone subscriber base threshold levels and technology based spectrum allocations, on a free basis. These do not appear to be part of a publicly defined spectrum policy," Tata said in a communication.
DoT sources confirmed receipt of Tata's letter dated April 3 and said the department was looking into the issues raised by him.
Tata has raised a very serious issue of 'self-proclaimed subscriber base' by every individual service provider and
objected to DoT's order of allocating spectrum on such basis without an established mechanism for verification.
"It specifies a cut-off level of subscriber size for eligibility of additional spectrum, without any recognition given to the relative years of operation of respective providers," Tata said.
He sought clarification over the different treatment of CDMA and GSM technologies. CDMA operators have been
allocated only up to 7.5 MHz spectrum compared to 15 MHz to GSM operators, apparently on the grounds that the former is more spectrum efficient.
"This is irreconcilable, particularly in a technology-driven industry where new developments and technologies will
be introduced continuously, which will have higher capabilities, greater cost-efficiency and lower cost than existing technologies," he added.
Tata said there were wireless technologies on the horizon, which along with Internet Protocol, would be a major threat to GSM and CDMA-based technologies as well as existing technologies for data and video transfer.
"Will these newer, exciting, cutomer-friendly technologies be banned or restricted in India by the DoT to protect users of current technologies," he asked, questioning DoT's policy. "...and when the GSM operators need to migrate to WCDMA shortly, where a dedicated 5 MHz chunk of spectrum is required to offer services, will the same impositions be made on them as are currently being made on CDMA operators," he said.
It is pertinent to note that CDMA nad GSM-based operators have been at loggerheads with each other over the spectrum allocation policy and lobbying for greater allocation for themselves.
Ratan Tata had earlier raised the issue of charging hefty fee for spectrum, which was opposed by various service
providers saying this would increase the cost of services.
Tata has asked DoT to seek views of all constituents to be heard and considered, before finalising the allocation of
any additional spectrum.
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