Higher-spectrum slabs soon: DoT

NEW DELHI: The Department of Telecommunications (DoT) appears to be in no mood for a confrontation with the regulator, and is in the process of notifying higher frequency slabs that can be allocated to mobile telecom operators.

Reacting to the recent letter from the chairman of Telecom Regulatory Authority of India (Trai) Nripendra Misra, who hit out at the government for deviating from its spectrum allocation recommendations, DoT secretary Siddhartha Behura told DNA Money on Wednesday that DoT’s objective is to remain consistent with the regulator’s views.

“We don’t want to go against or beyond the Trai recommendations,” Behura said, replying to a query on Misra’s letter to him earlier this week.

“DoT would be completely consistent and in conformity with the views of Trai,” he said.

Misra had pointed out in his letter to Behura that higher slabs of spectrum allocation (beyond 7.2 MHz) had been removed by DoT in its recent order, even though Trai had recommended up to 10 MHz of spectrum slab for GSM operators.

But Behura told DNA Money that higher spectrum slabs would also be announced by DoT “within a day or two”.

He admitted that while announcing the new spectrum allocation criteria, DoT should have clarified that a statement on higher frequency slabs was to follow shortly.

However, responding to Misra’s objection that the frequency slab after 6.2 MHz has been fixed by DoT at 7.2 MHz for the same subscriber base that Trai wanted for 8 MHz, Behura said that DoT’s interpretation was that the norm was in sync with the regulator’s recommendation.

However, “we (DoT) will clarify to Trai” if there is a need, he said.

On whether the government was planning to withdraw the extra spectrum that was allocated beyond the current norms to some of the mobile operators, Behura said, “it is premature to talk about it now.”

On the issue of revision of spectrum usage charges to be paid by telcos, the DoT secretary said that the Telecom Commission was examining the matter.

There’s a possibility of these charges going up from the current level of 2 to 6% of their annual gross revenue for spectrum between 4.4 MHz and 15 MHz.

Trai had recommended hiking the spectrum charges, and an internal committee in DoT recently proposed a revenue-share rate of 8% of AGR for up to 5 MHz and an additional 1% for every MHz.

The Telecom Commission is expected to decide on the new spectrum charges on January 22.

Meanwhile, leading mobile player Bharti Airtel on Wednesday said it expects the government to allot additional spectrum to existing operators as per Trai’s recommendation.

“They (government) have no choice but to allot additional spectrum to existing operators as per Trai’s recommendations,” Bharti Airtel chairman Sunil Bharti Mittal said on the sidelines of a summit here.

In his letter to Behura earlier this week, Misra had said, “the DoT decision (on spectrum allocation criteria) is not as per the authority’s recommendation.”

Misra added that the authority is of the opinion that the DoT’s averment that Trai’s recommendation on allocation of spectrum has been accepted will not be correct.

DoT had recently announced that it had accepted the Trai recommendation on revising the subscriber-linked spectrum allocation criteria.

The DoT, in an affidavit before telecom dispute tribunal TDSAT, had also said that, as an interim decision, spectrum is to be allocated based on Trai’s recommendation.

But, while Trai recommended allocation of 8 MHz of spectrum after the 6.2 MHz slab, the new DoT norm has fixed the highest slab for GSM operators at 7.2 MHz.

However, DoT wants telcos to have the same subscriber base for 7.2 MHz frequency slab, as Trai had recommended for 8MHz.

Misra stated that although DoT had accepted the Trai recommendation for allocation of up to 10 MHz of spectrum to GSM operators in a service area, the new order has kept the ceiling at 7.2 MHz.

This is “contrary” to the earlier DoT decision, “and will create an atmosphere of uncertainty and non-level playing field in the sector,” according to Misra.