TRAI to revamp spectrum allocation

NEW DELHI: There is a need to evolve an allocation procedure for spectrum considering technical and pricing incentives from the current system of linking it to subscriber base and eventual roll out. This was stated in a consultation paper released by the Telecom Regulatory Authority of India (TRAI) on spectrum and related issues.




"The present networks were evaluated against various possible theoretical benchmarks and initial assessments suggest that in a number of networks there was scope for improvement of spectral efficiency to get better results", it said. It also sought a feedback on minimum spectrum allocation to each existing operator and new operators among others.




In the existing framework, the spectrum charge has two components i.e., an entry fees and an annual license fees. The objective is to devise a pricing strategy taking into account both these components.



It may be advisable that the entry fees for spectrum be kept separate from the annual license fees. The prime reason being the fact that the basis for determining these fees is different, according to the TRAI consultation paper.



The present basis of allocating spectrum based on subscriber base in a way reflects the Erlang density (a unit of traffic density in a telecommunications system) but assumes constant traffic pattern. In a dynamic and aggressively competitive sector like ours, substantial traffic increase occurs when tariffs fall, thereby, upsetting the basic assumption of constant traffic pattern.




"On purely technical ground, it would be advisable to shift to an evaluation criterion based on Erlang density achieved over a pre-specified area for a given quality of service and bandwidth, the paper stated.




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