Monday, November 29, 1999

Mobile operators divided over TRAI``s spectrum recommendations

News posted by www.newsinfoline.com

New Delhi, July 7 (PTI) Mobile service providers were divided over TRAI''s proposals when they met Telecom Minister A Raja, with AUSPI and COAI opposing suggestions like one-time charge for spectrum beyond 6.2 Mhz and RCom as well as new players supporting the regulator. Due to diverse views among the operators, Raja has constituted an internal committee of the Department of Telecom, headed by Member, Technology, to review the recommendations and submit a report to the Telecom Commission for further action. Bharti Airtel, which was present at the meeting, was believed to have slammed the recommendations by stating that the question of one-time charge for allocations beyond 6.2 Mhz cannot arise as the company does not believe in paying 3G prices for 2G. Another leading operator, Vodafone, was also understood to have spoken on similar lines. Meanwhile, Raja decided to refer the matter to an Empowered Group of Ministers headed by Finance Minister Pranab Mukherjee. He has written a letter to the Prime Minister in this regard. The CMDs of Mahanagar Telephone Nigam Limited and Bharat Sanchar Nigam Limited, who also participated, were understood to have demanded reimbursement of spectrum fees paid by them recently. TRAI had recommended that the companies pay a one-time fee, based on 3G prices, for holding 2G spectrum beyond 6.2 MHz. It also suggested refarming of spectrum when the licences come up for renewal, which could entail a huge outgo for the incumbent operators. Airtel is understood to have said that the intention of the government should not be to take away spectrum from higher use and allocate it for lower purposes.

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