COAI suggests preferential 2G allocation

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New Delhi, Dec 1: The battle for 2G spectrum took a twist with the Cellular Operators’ Association of India (COAI) suggesting a hierarchy of preference while allocating additional spectrum, even among GSM operators.

In a fresh proposal sent to telecom secretary DS Mathur, COAI director-general TV Ramachandran said existing GSM licencees who came in through a fair and transparent selection process, through the national telecom policy (NTP) 99 migration settlement, or through the unified access service licence after paying the appropriate entry fees, be accorded first priority.

Prima facie, his suggestion includes all GSM operators obtaining licences between 1994 and 2003. The twist is that the COAI suggests further segregation, with pan-India operators given preference over those that have a limited footprint but now want to extend their operations to other service areas.

COAI has placed CDMA operators keen on deploying GSM technology in the third category, which means their requirement should be met only once the needs of the first two categories were met. New licencees have been placed in the fourth category.

Analysts see the move as jostling for spectrum ahead of the release of 45 Mhz by defence services, of which 20 Mhz is for 2G services.

The COAI proposal is sure to split the GSM players as it favours pan-India players like Bharti Airtel, state-owned Bharat Sanchar Nigam Ltd (BSNL), Hutch-Essar (to an extent) over the likes of Idea Cellular and Aircel, which are present in pockets but are now expanding to other circles. It suggests that Bharti and Hutch-Essar’s requirement for additional spectrum for the Mumbai circle be met first than Idea’s, which has recently been granted a licence for the circle.