GSM operators differ with TRAI on spectrum plan

GSM-based cellular operators and the Telecom Regulatory Authority of India seem to be on a collision course over the recent recommendations on subscriber base spectrum allocation policy.

While the Chairman of India’s largest cellular company, Mr Sunil Bharti Mittal, said that TRAI had got it wrong in suggesting that the operators should pack in more subscribers to get additional spectrum, the telecom regulator dismissed the GSM operator’s allegations of being non-transparent.

Mr Mittal also said that telecom companies may be forced to raise tariffs if additional charges are levied on them. TRAI has suggested that operators having more than 10 Mhz spectrum should pay higher charges. “Whatever charges the Government raises or brings down will be reflected in the tariff,” Mr Mittal told reporters on the sidelines of an industry event.
Subscriber criteria


On TRAI’s proposal to more than double the subscribers required to qualify for additional spectrum, Mr Mittal said the operators cannot add more number of subscribers with the current spectrum available to them. “TRAI is grossly wrong in its calculations,” he said

Meanwhile, TRAI officials justified its recommendations and said that the operators went overboard by alleging that the regulator’s suggestions were illegal. They said that TRAI was a law making agency and not a law breaking one.
Charting actions


GSM operators led by the Cellular Operators Association of India are charting out their future course of action including the option of approaching the Telecom Dispute Settlement Appellate Tribunal.

However, those opposed to a legal move argue that since the TRAI proposals were only recommendatory in nature, the court may not admit the case. “When the GSM operators had challenged the TRAI recommendations on WLL limited mobility, the TDSAT had refused to pass an order on the grounds that there was no cause of action. The final decision maker is the DoT and operators can only take legal recourse after a policy is announced,” said an operator opposed to taking legal recourse against the TRAI recommendations.

However, those in support said that a legal challenge at this juncture could send the right signals to the DoT when it discusses the TRAI proposals.