10 January 2008

DoT rings in new subscriber-linked spectrum norms: ET

DoT rings in new subscriber-linked spectrum norms
Updated on 11th Jan.

Amidst all the chaos over issuing letters of Intent to new players and clearing the application of the Tatas to offer GSM services, the Department of Telecom (DoT) has quietly come out with a new subscriber-linked spectrum allocation norms. These new norms, which the DoT has said will come into 'immediate effect', will be the basis on which existing GSM and CDMA operators will be granted additional radio frequencies for expansion of their networks in the circles where they already operate.

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While the DoT had earlier said that it had decided to accept telecom regulator TRAI's recommendations that both GSM and CDMA service providers increase their subscriber base two to six times (depending on the circle) before they are granted additional spectrum, as the new policy, it has however made some changes on the recommendations of TRAI.

While TRAI had specified that GSM operators should have 1.5 million subscribers in the metros, 3 million in A and B category circles and 2 million users in Category C circles to be eligible for 8 MHz of spectrum, the DoT, in its new policy, has said further tightened it and said that operators will be allotted only 7.2 MHz of radio frequencies against this subscriber base. The changes are on account of the DoT's decision to endorse its official spectrum panel's recommendation that GSM operators be given additional spectrum in quantities of 1 MHz, as against the current norm where they are given additional radio frequencies in tranches of 1.8 MHz to 2.2 MHz.

As per the new norms, which have been posted in DoT's the Wireless Planning and Co-ordination (WPC) wing's website, GSM operators who hold 6.2 MHz of spectrum in a circle, will get only 1 MHz of additional spectrum in the next round of allotment when their subscriber base increases. As per TRAI recommendations, after 6.2 MHz, GSM operators get additional radio frequencies in tranches of 1.8 MHz - this implies, from 6.2 MHz to move to 8 MHz, but as per the new policy, they can only move to 7.2 MHz. While DoT has reduced the spectrum offered, it has not brought down the subscriber base criteria, a move that is bound to see protests from leading GSM operators.


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