The Department of Telecommunications (DoT) has rejected Reliance Communications? demands for additional 2G spectrum for its GSM services. This is because the DoT feels it is inappropriate to process additional spectrum requests from any operator, since the Telecom Regulatory Authority of India (TRAI) is scrutinising the feasibility of pricing additional airwaves.
RCOM, which had been awarded 4.4 MHz of start-up GSM radio frequencies in most circles, has requested for an additional 1.8 units of spectrum on the grounds that this was the minimum amount committed to the company when it obtained approvals to launch services on this technology platform in 2008.
Further, the operator has also pointed out that TRAI?s latest recommendations cite that additional airwaves must first be made available to new entrants who have already been awarded start-up spectrum to help them perform their operations efficiently. This implies that companies which hold 4.4 MHz of start-up spectrum will be given first priority to enhance this to 6.2 MHz for no additional cost. Next in line will be incumbents that currently hold less than 8 MHz of airwaves. Their holding will be enhanced to the 8 MHz cap provided they meet rollout obligations and pay the one-time fee.
Last in line will be new entrants like Tata DOCOMO and Uninor, who are yet to receive start-up airwaves in many circles, according to TRAI. Besides, the process of allocating additional spectrum to all existing companies has also been put on the backburner, in order to avoid any legal complications.
This comes after Tata Teleservices Limited told the DoT that any move to award 2G spectrum according to a formula prescribed by TRAI would amount to serious discrimination against the company, while adding that the company had first rights to these scarce resources.
