The Hindu Business Line : Spectrum panel not in favour of subscriber-based allocation

New Delhi, Dec. 19 The battle for spectrum could be prolonged further with the panel, set up by the Communications Ministry to review the allocation process, suggesting that another technical committee should be formed to arrive at the right method of distributing additional radio waves to existing operators.

The committee said that the subscriber-based spectrum allocation may not be a robust method in the long-term, and suggested that the Government may consider a combination of auction and subscriber-linked criteria for giving incremental radio waves to existing operators.

“The time has probably come when we need to look at other criteria for deciding incremental spectrum allocation, possibly in combination with the subscriber-linked criterion. The subscriber base can continue to be a necessary criterion, but in the long run, it may not be a robust method by itself for releasing additional spectrum to existing operators,” the panel’s report said.

One such method suggested by the committee is to first grant a minimum allotment to an operator along with the licence, and then auction the remaining spectrum, with a cap on the total spectrum that any operator can have in a circle. It proposed that the Government could also consider a combination of auction and subscriber-linked criterion.

“Here, one would periodically auction not large chunks but incremental quantum of spectrum. The eligibility of an operator to participate in the auction and bid for the next incremental quantum of spectrum would depend on whether the operator meets a minimum subscriber base criterion,” the report said.

The panel observed that the additional spectrum allocated to GSM operators can be reduced to 1 Mhz at a time, instead of 2.4 Mhz at present. If the Government accepts these suggestions, existing operators such as Bharti Airtel and Vodafone Essar will get lesser amounts of spectrum each time and at higher costs.

On the other hand, new entrants such as Reliance Communications would get at least 4.4 Mhz as start-up spectrum without any additional cost. GSM operators had earlier dissociated themselves from the panel’s proceedings on the ground that it had a predetermined mind.

The 20-page report submitted to the Government said that since the panel was divided on the issue of optimum subscriber base, it was up to the Communications Ministry to decide whether it wanted to accept the subscriber-based norms suggested by the telecom regulator or the one proposed by the Telecom Engineering Centre as an interim measure, till the new committee evaluates all the options.