GSM players split; Ambani, Tata bond

.Tata Tele says spectrum norms favour GSM players by 2:1 
.Bharti, Vodafone, Idea stay together; Maxis-Aircel, Spice go their separate ways

NEW DELHI: Is it time for bonding in the Code Division Multiple Access (CDMA) camp?

Arch rivals Reliance Communications and Tata Teleservices (TTSL) appear to be speaking the same lingo for a cause — the controversial issue of allocation of airwaves or spectrum.

But, there’s a clear split within the GSM (global systems for mobile  communications) group on related matters.

Even as GSM leaders, mainly Bharti Airtel, Vodafone Essar and Idea, continue to stick together in making uniform presentations to the government on the strategy for allocation of spectrum, Maxis-Aircel and Spice (both also GSM) have gone their separate ways on the issue.

However, CDMA player TTSL on Tuesday backed Reliance Communications in seeking withdrawal of extra spectrum from GSM operators.

Anil Ambani, chairman of CDMA leader Reliance Communications, had earlier written to Prime Minister Manmohan Singh, stating that some GSM operators-Bharti, Vodafone Essar and Idea Cellular-had been allocated extra spectrum beyond their entitlement and that the same should be returned.

Incidentally, RCOM has already been permitted by the government to offer GSM services once it’s allocated spectrum. And, TTSL has also applied for offering GSM services.

In a statement, Tata Teleservices Ltd has said that it has rejected the package presented by the Department of Telecommunications (DoT), calling the proposal “biased”.

TTSL managing director Anil Sardana said it is very dismaying that the proposal again talks about spectrum allocation, “which is 2:1 in favour of GSM”.

“It is this very cause which has pushed CDMA players to move towards GSM as the frequency allocation to GSM has been very liberal. Additionally, for the same number of cutomers that TTSL has now, some of the large GSM operators had more than double the spectrum when they held same spectrum, by virtue of which such GSM operators have saved thousands of crores of capital investments,” Sardana said.

Incidentally, RCom said much the same recently. Ambani has written three letters on spectrum issues to the PM within a month.

DoT had a meeting with GSM and CDMA operators on Monday, in an attempt to resolve the spectrum allocation imbroglio. While the Telecom Regulatory Authority of India (TRAI) had tightened the subscriber-linked spectrum allocation criteria norms recently, the Telecom Engineering Centre (the technical wing of DoT) subsequently made the rules even more stringent. Those norms are being reviewed by the government now, mainly to appease the GSM players.

But even the “peace formula” offered by the DoT to GSM players is unacceptable to companies such as Bharti, Vodafone Essar and Idea.

Bharti chairman Sunil Mittal, for instance, said on Tuesday on the sidelines of the India Economic Summit that the subscriber-linked criteria for spectrum allocation are too high.

GSM operators, who had moved the dispute tribunal TDSAT recently against the government allowing dual technology for CDMA operators, would not change their stand, Mittal said.

The Cellular Operators Association of India (COAI), representing the GSM operators, had moved TDSAT.

But later, GSM players Maxis-Aircel and Spice pulled out their petition from TDSAT as they wanted start-up spectrum in various circles.

Bharti is the only GSM player with presence in all the 23 circles of India.

Earlier, Mittal had reacted to Ambani’s proposal that GSM operators must return extra spectrum, saying that Reliance “should get its mathematics right”.

Nevertheless, Tata Teleservices on Tuesday said that it is time that such telecom service providers be asked to surrender additional spectrum beyond the contractual amount of 6.2 Mhz.

“Re-farmed spectrum should be given to the crossover technology operator, new operators and operators waiting for spectrum since December 2006,” the company said.

According to TTSL, maximum spectrum per operator under all conditions should be capped at 10 MHz considering future growth, and that the government should work out a mechanism to charge for spectrum above the contracted value.

“While Tata Teleservices was asked to surrender spectrum in 2004 and it did return, the view now being expressed is that operators with higher spectrum would be given adequate time to reach up to the new subscriber norms or else then return. If such is the condition being favoured to a few, why can’t all operators be similarly given extra spectrum for them to also similarly achieve subscriber norms?” asked TTSL.

Tatas have demanded that GSM and CDMA operators must receive the same amount of upfront spectrum and the same amount of contracted spectrum for which government should change licence conditions immediately.