It's
four in the afternoon and although it is still winter, dusk is at
least a couple of hours away in Delhi. In Room No. 210 in Sanchar
Bhawan on the capital's Ashoka Road, Nripendra Misra, Secretary,
Department of Telecommunications (DoT), is strangely calm. "By
March 15, I am confident, the DoT will announce its new spectrum
policy," murmurs Misra, who retires on the last day of March.
His composure contrasts starkly with the agitation that marks most
players in telecom; for starters, everyone would like to second-guess
Misra, once the senior-most Indian bureaucrat interacting with the
World Trade Organisation (WOT). Right now, the up cadre IAS officer
is waiting for recommendations on the spectrum policy, which Pradip
Baijal and his team at the Telecom Regulatory Authority of India
(TRAI) are now busy preparing at their Safdarjung Enclave office,
located a few kilometres away from Sanchar Bhawan.
THAT GSM VS. CDMA THING AGAIN
The spectrum wars have again divided the
industry vertically, with companies using the CDMA platform
(Reliance Infocomm, Tata Teleservices) on one side and those
using the GSM one (Bharti, Hutch) on the other. |
ASSOCIATION OF UNIFIED
TELECOM SERVICE PROVIDERS OF INDIA (CDMA)
Current allocation of 5 MHz in the 800 band is insufficient;
need additional bandwidth in other bands for expansion. Internationally,
allocations for CDMA operators varies from 10 MHz-20 MHz.
Want the 1900 MHz band to be allocated to CDMA operators
for 3G services. GSM operators should operate 3G services
in the 1800 MHz band, not the 2000 MHz band.
Even if the 2000 MHz is allocated to GSM operators, the
interference from CDMA's 1900 MHz band to GSM's 3G services
can be blocked using guard bands and filters.
CELLULAR OPERATORS ASSOCIATION OF INDIA
(GSM)
They are yet to reach the subscriber numbers projected in
their original agreement with the government, which stipulates
that further frequency allocation is linked to subscriber
growth.
CDMA operators should not be given the 1900 MHz band as
that would interfere with 3G GSM services in the 2000 MHz
band. In fact, CDMA operators should be given the 1800 MHz
band.
The CDMA operators are out to kill GSM operators. This suggestion
involves rejection filters at every base station and guard
bands greater than 5 MHz, involving huge investments.
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It's still not clear what Baijal will recommend;
nor does anyone know whether Misra and his boss, telecom minister
Dayanidhi Maran, have already decided what shape the policy, eagerly
anticipated and with the power to make or break telcos should take.
Its importance is evident from what Baijal, the TRAI chairman, who
has been in and out of long meetings at his HQ, tells this correspondent
over the phone: "It's a very important issue (spectrum) and
I would like to talk to you on that. You know, there is tremendous
pressure on me (from various interested groups)." Baijal could
not meet BT till the issue went to press, but one thing is clear:
another bloody battle is in the works in the Indian telecom business.
This time, the bone of contention is radio spectrum
frequency, a scarce natural resource used by telecommunications
and broadcasting service providers to transmit data or voice. Yet
again the war is between the two competing mobile technology platforms,
GSM and CDMA.
The dispute is over the frequency band at which
each technology group will provide 3g (third generation) services
that will offer high-end Internet applications on mobile phones
at 200 times faster than the current speeds (see That GSM vs. CDMA
Thing Again). To cut to the gist, the CDMA lobby wants the 1900
mhz band and the GSM lobby fears this will interfere with their
proposed 3g services on the 2000 mhz band, and says CDMA operators
should be given the 1800 mhz band. Both sides have their arguments
laid out.
"I will lose my bargaining power with
vendors and it would make a bad business case even if they agree
to make equipments for the 800 and 1800 mhz combination," says
an executive at a top CDMA operator. He goes on to say that globally
(mainly the us, Canada and Brazil) CDMA operates in the 800 and
1900 mhz band, ergo equipment is available. But the Cellular Operators
Association of India (COAI), which represents GSM players, says
allocating the 1900 mhz band to the CDMA would be "against"
International Telecommunications Union standards (the CDMA lobby
denies this) and that this would block the migration of GSM players
to 3g services in the 2000 mhz band.
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Dayanidhi Maran
Minister, IT & Communi-cations
Maran's sympathies, unlike his predecessors', are reportedly
with the GSM lobby |
Nripendra Misra
Secretary, DoT
Misra wants everyone to wait for the
spectrum policy that he will deliver by March 15 |
Pradip Baijal
Chairman,
TRAI
Baijal's recommen-dations are awaited
but he is likely to go with the CDMA lobby |
A.K. Sinha
CMD,
BSNL
The state-owned operator's preference
could have some say on the policy |
Mukesh Ambani
CEO,
Reliance
Infocomm
Lobbying is out; His hands are full fending
off salvos from his brother, Anil |
Sunil Mittal
CEO, Bharti Tele-Ventures
His company has over 10 million subscribers
for its GSM service and Mittal himself is no pushover |
In the past, the CDMA lobby, its cause championed
by Reliance Infocomm, has always had the last laugh, but if the
current situation is any indication, the regulator (TRAI) and DoT
seem to be in rival camps, with the GSM lobby acquiring more clout
with the latter. The present DOT under Maran, telecom industry watchers
say, is not pleasantly disposed towards Reliance and the CDMA lobby.
That could explain why the GSM lobby isn't unduly worried. "We
have faith in DOT and the minister Dayanidhi Maran," says COAI's
Director General T.V. Ramachandran. However, telecom secretary Misra
says, "We have constituted a committee to look into the spectrum
requirements for 3g, which would take a technology-neutral stand.
It must also not result in monopoly of any technology."
Fact is, the GSM lobby, which accounts for
about 40 million subscribers is no pushover. And fact is, Reliance,
the company that made a difference in past disputes (getting its
and the CDMA lobby's way each time) is currently not best placed
to lobby, given the battle between Mukesh Ambani and his brother
Anil. Despite that, the spectrum war is likely to be as severe as
the limited mobility controversy. Also playing a part are the equipment
manufacturers, with Qualcomm (it has proprietary rights over CDMA),
Lucent and Motorola batting for CDMA camp, and Siemens, Alcatel
and Ericsson for GSM. It promises to be interesting.
CONSTANT REFRAIN
The spectrum war is the latest in the ongoing
Us vs. Them saga in Indian telecom. |
1995: India kicks of mobile phone services
with two GSM operators in a service area. The spectrum allocated
is 4.4+4.4 MHz in the 900 band.
1999: With the development of new technologies like
CDMA, all licences are made technology neutral. The third
cellular mobile licence is given to incumbent operators like
MTNL and BSNL.
2001: The government auctions the fourth cellular
licence. The spectrum allocated is 4.4+4.4 MHz in the 1800
band, with a possibility of increasing it to 6.2+6.2 MHz.
The government allows companies offering basic telephony services
to provide 'limited mobile' services. Cellular companies protest.
2002: Reliance Infocomm launches its full mobile
service using CDMA technology and also offers national roaming
much to the chagrin of the cellular operators. Reliance prices
its calls at 40 paise a minute; the cellular companies are
forced to cut tariffs.
2003: The government allows migration from a service-specific
regime to a unified-licence regime. This means operators like
Reliance Infocomm and Tata Indicom (who had missed out on
the cellular opportunity in the earlier auctions) can get
into business by paying the differential between the entry
fees paid by them and the amount paid by the fourth cellular
licensee.
2004: A controversy on access deficit charge erupts,
with BSNL and MTNL alleging that Reliance Infocomm is avoiding
paying ADC by routing international calls as local calls.
The Department of Telecommunications fines Reliance Rs 150
crore for this alleged violation of licence conditions.
With both CDMA and GSM operators vying for market share
in the growing wireless market, another tug of war starts
over the allocation of additional spectrum. CDMA operators
want the 1900 MHz band for their 3G services while GSM operators
say that this will interfere with their own 3G services in
the 2000 MHz band, as already earmarked in the National Frequency
Allocation Plan.
2005: TRAI is expected to come out with its spectrum
recommendations in end-January or early February. DOT will
take a final decision on the allocation of spectrum by March
15.
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