?Swapping spectrum with defence won?t hurt CDMA?

The Cellular Operators Association of India (COAI) has said that swapping spectrum in the 1,900 MHz band with the defence for more 3G spectrum in the 2.1 GHz band would not be a hurdle in the growth path of CDMA operators.

In a letter written to telecom secretary MF Farooqui on Thursday, COAI director-general Rajan S Mathews said, ?There is diminishing interest of operators in the CDMA technology and the subscriber base is constantly decreasing. Hence, the current allocations are enough to cater to subscribers. Moreover, CDMA players have already deployed EVDO technology in the 800 MHz band and, hence, they do not need the 1,900 MHz band for providing data speed services?.

The COAI has also highlighted the fact that reserving the 1,900 MHz band for CDMA operators does not make any sense because the current handsets would not be compatible with the 1,900 MHz band. ?It is also pertinent to note that the usage of 1,900 MHz by existing CDMA players is not practically possible as the CDMA handsets for the 800 MHz band are not compatible with the 1,900 MHz band. The existing CDMA subscribers will need to buy new handsets in case they are migrated to the 1,900 MHz band,? COAI has said.

The letter comes in the backdrop of efforts by the department of telecommunications and the defence ministry to get at least three carriers of spectrum in the 2.1 GHz (3G) band, vacated by the defence forces, by offering them the 1,900 MHz band in lieu of it.

The 1,900 MHz spectrum was earlier reserved for CDMA operators who hold the 800 MHz band. However, the auctions held in November 2012 and March 2013 showed operators had no interest in CDMA spectrum and services as there were no takers for it. Thus, in its latest recommendations, the Telecom Regulatory Authority of India has not suggested auctions in the 800 MHz band. Instead, it wants to explore the possibility of an EGSM band by expanding this spectrum into 900 MHz, which is seen as more valuable by operators and can also bring in more revenues for the government.

Once there?s no reservation for 1,900 MHz, the government can swap 7.5 MHz in this band with the defence forces for 15 MHz of 2.1 GHz spectrum.

This would make available three carriers of 5 MHz, which can then be put up for auction. The advantage for defence in this scheme would be that through this swap it would get 79 MHz of contiguous spectrum, which it currently does not have, by holding two blocks of 7.5 MHz in the 2.1 GHz band.

The COAI letter has welcomed the swap proposal as it would unlock 3G spectrum availability and it has also endorsed Trai?s move on creating an EGSM band.

?We believe that given the declining numbers of CDMA users (28% y-o-y), the shrinking minutes of use (an average decline of 10% y-o-y over the past three years), the lack of interest in acquiring CDMA spectrum (nearly 70% unsold), the apparent desire by one operator to surrender spectrum and greater interest in 900 MHz, there is a strong case to reconfigure the 800 MHz band plan,? COAI has said.