These companies, who are operating cellular services in circles, are demanding that they be given additional spectrum, up from the current 4.4 MHz for outgoing as well as incoming communication, to 6.2 MHz, which is the spectrum that is currently allotted to metro operators. However, according to a senior DoT official, "These companies have been asked to set up more base stations and reduce the cell size, so as to utilize the spectrum allotted to them more efficiently."

Tata Cellular, Reliance Telecom, Escotel, Bharti, among others have sought for the spectrum allocation to be increased. The DoT feels that optimal network planning has not been done by the operators. At present the spectrum allocated to companies in the metros is, 6.2 MHz for outgoing and incoming channels. In the circles, however, due to the larger area under consideration and lesser density of subscribers, 4.4 MHz has been allotted.The DoT, however, is of the opinion that for a very small subscriber base a larger bandwidth is being demanded. "The capital expenditure depends on the cell size and world over, the trend is to to go for smaller cell size in order to provide service to a larger subscriber base within the available bandwidth," added a DoT source.

"The attempt to avoid increased capital expenditure by operators inevitably calls for more bandwidth. Therefore, the operators seek more bandwidth, which is priced low compared to the other fees and expenditure," explained the DoT source. Further, in the opinion of the Spectrum Management Committee, larger cell size corresponds to taller antenna, which results in interference.

Taking into account these factors, the DoT has advised these operators to increase their capital expenditure by decreasing their cell size and lowering their antenna height to arrive at a optimum solution for bandwidth constraints-rather than demanding additional spectrum.