The Department of Telecommunications (DoT) has rolled out a new subscriber-linked allocation policy, under which it increased the number of users required for allocation of specific frequencies. Even though, this has been moved to provide a respite to the raging spectrum controversy, operators allege the new norms are not any better than the existing or proposed ones.
However, the DoT has sought implementation of the new policy on an interim basis, but stated spectrum allocation would be subject only to availability.
The DoT’s Wireless Planning and Co-ordination (WPC) wing, in an order issue on Friday announced that additional spectrum in multiples of 1 MHz would be provided to telecom service providers. WPC also created new slabs – 7.2 Mhz, 9.2 MHz, 11.2 MHz, 12.2 MHz, 13.2 MHz and 14.2 MHz - for allocation of the additional spectrum.
At present, the lowest tranche for spectrum allocation is 4.4 Mhz, followed by 6.2 MHz and 9.2 MHz, while 10.2 MHz is the upper-most slab.
The new order, which comes into “effect immediately” and GSM operators, would need to have a subscriber base of 1.5 million in metros to become eligible for spectrum of 6.2 MHz, 1.8 million for spectrum of 7.2 MHz and 2.1 for 8.2 Mhz spectrum.
According to existing spectrum allocation policy, operators need to have 0.3 million users to be eligible for 6.2 Mhz in metros, while the Telecom Regulatory Authority of India’s (TRAI) had recommended 0.5 million. Similarly, to get 8.2 MHz, the existing norms require a subscriber base of 0.6 million in metros, while TRAI had recommended a subscriber base of 1.5 million. The revenue share for spectrum charges, as per orders in this regard, would apply on the average gross revenues (AGR) for the complete service area, WPC said.
WPC said that active subscribers and peak traffic averaged over a month (for a minimum of 40 milli Erlangs per subscriber) in the visitor locator register (VLR) would be taken for this purpose.
According to analysts tracking the sector, the increase in subscriber base for spectrum allocation will only make it a bit harder for telecom companies as none of the companies, not even Bharti Airtel, will be able to meet the criterion.
The industry was not happy with the new policy. In a statement issued, Cellular Operators’ Association of India (COAI) secretary-general TV Ramachandran said: “of course, it addresses some of our concerns.”
“However, it is still not in conformity with TRAI recommendations. This is because the order specifies tranches of spectrum in steps of 1MHz and also prescribes the subscriber linkages for the same. However, the TRAI recommendations had prescribed subscriber numbers for discrete steps of 4.4/6.2/8.0/10.0/12.4 and 15.0 MHz and had not considered the effect of 1 MHz steps”.
“TRAI would have needed to review the entire progression of subscriber numbers, taking into account the Trunking characteristics of the spectrum. Hence, simple extrapolations of the numbers do not give the correct subscriber numbers,” he added in the statement. |
