The Hindu Business Line : TRAI wants review of Wi-Max policy

New Delhi, May 2 In a move that could further delay the introduction of broadband wireless services based on technologies such as Wi-Max, the Telecom Regulatory Authority of India (TRAI) has proposed a review on the spectrum allocation issues, including higher pricing.

The review is aimed at bringing some parity between norms governing 3G mobile services and broadband wireless services. In its earlier recommendations, TRAI had suggested a maximum reserve price of Rs 10 crore for broadband wireless spectrum and Rs 80 crore for third generation mobile services. It now wants a discussion on whether the fee for broadband wireless should be raised to 50 per cent of what has been suggested for third generation mobile services.

TRAI has also said that the reserve price for Wi-Max and other broadband technologies could also be raised to the exact levels as that of 3G in line with the technology neutral stand of the Government. The regulator has sought comments from all the stakeholders on the issue.

Explaining the need for a review, TRAI said, “the regulator had earlier given its recommendations on September 27, 2006. Since then, a number of developments have taken place in the telecom sector of the country. The spectrum allocation criterion for cellular licensees has been revised upwards which has resulted in increased valuation of the spectrum in all the commercial bands including broadband wireless.”

Other than higher spectrum valuation, TRAI said that fast changing global standards related to wireless broadband frequencies has necessitated a review. TRAI’s suggestion comes in the wake of a decision by the International Telecommunication Union, the global standards body governing the telecom sector, to include more number of frequency bands under the next generation wireless services category.

New bands

TRAI had earlier suggested policy measures for allocating capacity only in the 3.3 to 3.6 GHz band. However, since then the ITU has recognised other bands including 2.3 to 2.4 and 2.5 to 2.6 Ghz bands for wireless services. The mode of allocating these new bands should also be decided, the regulator said.

Industry observers point out that the move from ITU obliterated any difference between the scope of service offered by 3G and broadband wireless technologies at a global level. The development is expected to open up a fresh round of debate in the telecom industry with those supporting 3G technologies pushing for higher spectrum charges for broadband wireless services. However, those betting big on technologies such as Wi-Max will oppose any move to change the existing norms.

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