No bias between CDMA and GSM operators: DoT

NEW DELHI, INDIA: As the second round of 2G spectrum auction is round the corner, the triangular turf war among the CDMA and GSM service providers, and the government, has once again surfaced.

The disgruntled GSM players claim utter discrimination between them and the CDMA players. Even as the dilemma prevails, the Department of Telecom (DoT) strongly denied any bias between the CDMA and GSM operators to CIOL.

The GSM (such as Airtel, Vodafone and Idea) lobby demands 50 per cent cut in reserve price in 1800MHz band - on par with the CDMA 800MHz band, in addition to a one-time charge.

"We want to understand the rationale behind pricing. The government reduced only 30 per cent in 1800MHz," said Cellular Operators Association of India (COAI) director-general, Rajan S. Mathews.

The Association of United Telecom Service Providers of India (AUSPI) that represents CDMA operators (primarily include Reliance and Tata TeleServices) believes that they have certain challenges.

"The price is still steep; it needs to be lower. CDMA is a mass-volume segment. The ecosystem and AUSPI again stressed the need to cut down pricing further," said Reliance Communications president and CEO (wireless) Gurdeep Singh.

Telecom Secretary, R. Chandrasekhar, explains that in accordance with the Supreme Court direction, post cancellation of 122 licences on Feb 2, 2012, the government had conducted auction in November 2012.

"We took account of the TRAI recommendations after due consultative process. It suggested certain price. After considering all aspects (including both high and low rates), we arrive at reserve price for different bands," he said.

It was Rs. 18, 100 crore earlier, but the Centre, Chandrasekhar said, finally decided on Rs. 14,000 crore. , after considering the views of the DoT and Telecom Commission, based on a ratio of 1:3 for 800MHz and 1:2 for 900MHz bands respectively, though 900MHz was not auctioned earlier.

"Auction took place and spectrum in 18 circles were sold. At one circle, we got higher price, while in 17 circles, it remained low. No bids were received for remaining four circles," he informed.

"Since, there were some special challenges in the 800MHz band, no participant turned up. Based on the past learning and result of auction, the government took a call," Chandrasekhar said. The situation, he said, in two bands - 1800MHz and 800MHz - is different, while in the 900MHz band, the auction is taking place for the first time.

"It's not a simple decision or at individual level. It had gone through multiple layers and we kept all aspects in mind," said a top official.

The auction is slated for March 11 in remaining four circles - Delhi, Mumbai, Rajasthan and Karnataka. The government has fixed Rs. 9,100 crore (after 50 per cent reduction) for a block of 5MHz of airwaves in 800MHz band and has cut down 30 per cent price in the 1800MHz band meant for GSM service providers.