In a statement on the National Frequency Allocation plan 2011 (NFAP), the Cellular Operators Association of India (COAI) said, ?The release of the National Frequency Allocation Plan 2011 was eagerly awaited by the industry. The efforts of the Ministry are lauded for considering the requirement for IMT and broadband wireless in the 698-806 MHz frequency band, bringing it in line with international standards and the harmonisation of the 700 MHz band, which is recognised world over as the most economical and affordable band of spectrum, and which is particularly suited for Indian rural wireless broadband requirements.?

?The identification of additional bands for wireless will enable the rollout of broadband services in line with the National Broadband Plan and will streamline the efforts for better spectrum management which the COAI has long been advocating. The Minister?s view on spectrum being ?a scarce resource? and that it should be used ?rationally, optimally, efficiently and economically?, are fully endorsed by the COAI and the industry.  We now look forward to fixed dates for an early auction of the earmarked spectrum.?

?In the NFAP policy, the Ministry has reserved spectrum in 900 MHz, 1400MHz and 1800 MHz bands for promoting indigenous manufacturing in the country so as to minimise the countries reliance on the import of telecom equipment. While, COAI appreciates the promotion of indigenous manufacturing in the country, which is touted as the second largest telecom market in the world, it also perceives that such a policy decision may be susceptible to the danger of a possible backdoor entry into licenced cellular mobile services, which may lead to problems as were faced by the industry when WLL (M) was introduced.?

?COAI also recommends that in line with the recommendations of the Ashok Chawla Committee on allocation of natural resources, pricing and allocation of any spectrum should be transparent, fair and market based.?