Amid the ongoing 3G spectrum auctions, the Telecom Regulatory Authority of India (Trai) is giving final touches to the 2G spectrum pricing methodology. In a major relief for new operators like Uninor, Etisalat, Loop Telecom and others, 2G spectrum beyond 6.2 Mhz only would be auctioned as per the recommendations, expected within a week of completion of 3G auctions. Currently, the new operators hold 4.4 Mhz spectrum.
Incumbents like Bharti Airtel, Vodafone-Essar and Idea Cellular that hold spectrum beyond 6.2 Mhz would feel the similar relief as they would have to pay for the extra spectrum held from a prospective date?the date of implementation of the new policy and not from the date of holding the spectrum. This would considerably lessen their burden of payment. The formula for calculating the per Mhz spectrum cost before auctions are held would be worked out.
Currently, there?s no auction for allocating 2G spectrum. Along with the licence, the government gives 4.4 Mhz spectrum, which increases to 6.2 Mhz, 8 Mhz, 10 Mhz and beyond as and when certain pre-determined subscriber base is achieved by the operators in respective circles.
As per the Trai formula, operators having only the start-up spectrum of 4.4 Mhz (like Uninor, Rcomm GSM) would be given a spectrum upto 6.2 Mhz without auction. However, it would not be on the basis of subscriber-linked criteria. It would, instead, be based on a new criteria of roll out obligations and rural coverage.
Sources said that no level playing field is being made for CDMA spectrum with GSM as there are no more carriers left in 800 MHz. This will continue the disparity between GSM and CDMA operators. The revenue share which has
been recently enhanced by DoT to 3% onwards may also be rationalised.
