Sistema Shyam TeleServices Limited (SSTL) has approached the Telecom Regulatory Authority of India (TRAI) for its approval to bid for spectrum in the 800 MHz band in the upcoming spectrum auction.
The operator has written to the TRAI that it should be allowed to bid for spectrum in 800 MHz band in circles where it already holds licences for expanding its telecom services. Earlier, TRAI had recommended that SSTL should not be allowed to bid in the auction on the grounds that the operator could combine its existing spectrum and the newly acquired spectrum to provide superior services such as 4G. However, the operator has claimed that such a possibility could not arise because the spectrum which it plans to acquire and the spectrum which the operator currently holds is not contiguous spectrum. Since, SSTL will have access to non-contiguous spectrum there is no possibility for the operator to offer 4G services.
Currently, SSTL provides CDMA services using spectrum in the 800 MHz band. It plans to acquire additional spectrum in the same band to expand its business. Further, the operator has requested TRAI to lower the reserve price for spectrum in the 800 MHz band. The operator has claimed that the move would help boost participation in the forthcoming auctions, and create an equal footing with GSM technology operators. According to SSTL, while the government has significantly lowered the reserve price for spectrum to be bid by GSM players, the reduction in reserve price for CDMA players has not been that significant. The operator has stated that the absolute price of GSM spectrum is still high but GSM players can use the new bandwidth to offer more advanced technologies. The spectrum to be auctioned in the 1800 MHz and the 900 MHz bands which is to be auctioned in the next round of spectrum auction is partially contiguous providing GSM players an opportunity to offer superior services.
