Among the CDMA (code division multiple access) players, only Reliance Communications would be impacted (in Delhi and Mumbai circles) by the new spectrum criteria.
NEW DELHI: If the new subscriber-based spectrum allocation criteria are followed by telecom operators, many of the GSM (global systems for mobile communications) players, mainly Bharti Airtel and Vodafone Essar, cannot expand their user base much in metros and some Circle A cities, unless they opt for innovative spectrum management methods.
Among the CDMA (code division multiple access) players, only Reliance Communications would be impacted (in Delhi and Mumbai circles) by the new spectrum criteria.
The new norms, which were announced by the Department of Telecommunications (DoT) earlier this week, have removed all higher frequency slabs.
So, players will have to make do with less frequency for much higher number of subscribers.
GSM players have 7.2 MHz as the upper most frequency slab. To be eligible for 7.2 MHz spectrum, a GSM player needs 15 lakh users in a metro, 30 lakh in Circle A and B cities and 20 lakh in Circle C cities.
Although the Telecom Regulatory Authority of India (Trai) had recommended higher frequency slabs - 8, 10, 12.4 and 15 MHz also - DoT has not gone beyond 7.2 MHz.
So, whatever be the subscriber base increase beyond 15 lakh in metros, 30 lakh in circles A and B, and 20 lakh in circle C, a GSM operator would not be allocated more frequency than 7.2 MHz spectrum, as per the government order.
In the case of CDMA players, the uppermost frequency slab is 5 MHz, for which a player requires 20 lakh users in a metro, 50 lakh in circle A and B cities, and 40 lakh in a Circle C city.
Among GSM players, Bharti has crossed the 15 lakh subscriber base in all metros, which makes it eligible for the highest frequency slab of 7.2 MHz.
Bharti has also crossed the 30 lakh subscriber criteria in all A circle cities for the highest frequency slab, except in Gujarat. In circle B, Bharti would be impacted in Punjab and Rajasthan, where its subscriber base has already crossed 30 lakh.
In circle C, its expansion could be hit in Bihar, where its subscriber base 36.5 lakh, while the eligibility criterion for the highest frequency slab is 20 lakh users. So, overall, Bharti could be impacted in Delhi, Mumbai, Chennai, Kolakata, Maharashtra, Andhra Pradesh, Karnataka, Tamil Nadu, Punjab, Rajasthan, and Bihar.
Similarly, Vodafone Essar’s subscriber expansion could be hit by the new norms in Delhi, Mumbai, Kolkata, Gujarat and Uttar Pradesh (East), because of the company’s high user base in these places.
Idea could face spectrum hurdle due to high subscriber base in Delhi and Maharashtra. State-owned Bharat Sanchar Nigam Ltd (BSNL), another GSM player, would be hit only in UP (East), and Mahanagar Telephone Nigam Ltd (MTNL) in Mumbai, going by the latest norms.
GSM operators are expected to oppose the DoT spectrum allocation norms once again. The issue may also come up in the Delhi High Court on Monday, when the case filed by the Cellular Operators Association of India (COAI) against government permitting dual technology is heard.
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