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According to Cellular Operators Association of India (COAI), the recent communication from the Deputy Chairman of the Planning Commission to the Minister of Finance shows that the issues relating to re-farming of 900MHz spectrum have not been adequately looked into. This has led to the Department of Communications (DoT) approaching the Telecom Regulatory Authority of India (TRAI) for its views on the issue.
In a press release, COAI, says, ?Despite voluminous submissions made by the industry underlining serious gaps in the TRAI recommendations dated April 23, 2012 on auction of spectrum, which perfunctorily touched upon the issue of re-farming, it is understood from media reports that the TRAI has now non-transparently shared some further analysis on its earlier recommendations with the DoT without placing it before the industry for their feedback.?
COAI says that the GSM industry is aghast at the non-transparent manner in which the government is handling the issue. This lack of transparency in addressing the re-farming issue, renders any decision on it legally untenable, especially in light of Section 11(4) of the TRAI Act 1997 which requires the Authority to ensure transparency while exercising its powers and discharging its functions.
Further, the industry body reiterates that no proper consultation with the stakeholders has ever been carried out by the TRAI on the issues involved and the impact of re-farming, although TRAI acknowledges that it has significant impact on live networks, coverage and connectivity for hundreds of millions of mobile subscribers.
COAI in the press release cites a recent report by Analysys Mason on TRAI?s recommendations on spectrum re-farming to assert that enough consultation and debate has not gone into by the government while deciding on the issue of re-farming. As per the report the current TRAI proposal of full refarming of 900 MHz spectrum, will inadvertently lead to increase in retail tariffs and loss of connectivity, thereby affecting both the consumers and the industry severely. A decision having such serious ramifications needs proper consultation, which, though promised by TRAI, was never carried out.
COAI has requested DoT and TRAI to examine the issues involved in re-farming in a holistic, transparent, comprehensive and consultative manner so that the final decision is legally sound in terms of the provisions of the TRAI Act, the prevailing policy regime and the terms and conditions of licenses held by the 900 MHz network operators and also in public interest.
