According to Cellular Operators Association of India (COAI), the empowered group of minister?s (EGoM) decision to allow partial re-farming of spectrum held by existing operators in the 900 MHz band will lead to technical complications for operators.
In a letter to Salman Khurshid, Minister for External Affairs, Rajan Mathews, director general, COAI, says, ?It will be next to impossible to service 450-500 million subscribers in the existing 900 MHz band with the same quality of service with limited 2.5 MHz in 900 MHz band and remaining on 1800 MHz band without any disruption of wide-scale services.?
The COAI, representing the interest of the three incumbent GSM players, is of the view that an operator with 2.5 MHz in 900 MHz band and remaining spectrum in 1800 MHz band is worse off than an operator with complete network in 1800 MHz band.
Highlighting the technical implications of the recommendation of allowing operators to retain only 2.5 MHz of 900 MHz spectrum, COAI points out:
a. It will be next to impossible to service 450-500 million subscribers in the existing 900 MHz band with the same quality of service with limited 2.5 MHz in 900 MHz band and remaining on 1800 MHz band without any disruption of wide-scale services.
b. In fact an operator with 2.5 MHz in 900 MHz band and remaining spectrum in 1800 MHz band is worse off than an operator with complete network in 1800 MHz band as this network will give a false delusion of coverage. The difference in spectrum propagation/ network design in the two bands will lead to coverage constraints.
COAI reiterates that no proper consultation with the stakeholders has ever been carried out by the Telecom Regulatory Authority of India (TRAI)/Telecom Commission 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.
Mathews, says, ?It is submitted that vide our earlier submissions, the latest one being Letter No. RSM/COAI/222 dated October 29, 2012 (Annexure-I) we had highlighted the wide scale ramifications on the customers, technology, operators, investors, competition and the society at large. Our members had also commissioned the reputed international consultants, M/s Analysys Mason to carry out a study of the impact of refarming. The findings of this study were shared with the Department of Telecommunications vide letter dated June 5, 2012.?
It is saddening to note that all issues related to consumer service disruptions, operator?s balance sheet destruction, huge write off of existing assets in 900 MHz band and fresh investments required in 1800 MHz have not been completely addressed.
In light of the same, we urge the EGoM to setup a high powered Technical Committee including representatives from global companies and technical experts to study the feasibility of the option to retain 2.5 MHz. A detailed analysis of all issues involved in refarming including the full impact of refarming of spectrum in 900 MHz band on the National Telecom Policy-2012, industry and customers in terms of cost, tariffs and business viability should be carried out. Evaluation of international practices and experience thereof in this regard would also be helpful.
