Tatas not to trust Reliance

A serious fall-out between CDMA biggies Reliance Communications and Tata Teleservices Ltd (TTSL) on the allocation and pricing of 3G spectrum has weakened the CDMA lobby in their representation before the Telecom Regulatory Authority of India (Trai) on the issue.

As a result of the discord, the CDMA industry body Association of Unified Service Providers of India had to opt out of the joint meeting convened by Trai with GSM body COAI on Friday. The row now threatens the future of Auspi.

The spat intensified late Friday as TTSL independently wrote to Trai reiterating that CDMA operators be allotted 3G spectrum in the 1900 Mhz band. It also sought that an entry fee be charged from the operators for the spectrum. In the past, Tata group chairman has suggested that the 3G entry fee should be Rs 1,500 crore.

Sources close to Reliance said Tatas have been taking totally different stand on major issues, be it 3G spectrum allocation and pricing, or subscriber verification, leading to their “complete isolation from the industry”. Industry sources said that Auspi backed out of the meeting at around noon when the Tatas and Reliance stuck to their respective stand on allocation and pricing, making it difficult for Auspi to project a unified stance.

Sources said TTSL has little trust in Reliance’s stance because the latter has applied for GSM spectrum and is straddling multiple technologies. “There appears to be some dissonance in the CDMA lobby with Reliance seeking to commence GSM operations also,” an industry source said.

Reliance’s stand on 3G spectrum pricing has been that the government should charge Rs 150 crore for all A circles put together, Rs 100 crore for all B circles and Rs 50 crore for C circles. In addition, it has advocated revenue share as per the present structure.

Reliance’s position is quite similar to COAI’s, which maintains the industry should be made to pay only the amount required for reclaiming of spectrum from defence forces. COAI believes high entry fee would make the 3G services unaffordable for the masses, which would be against the objectives of the government.