Telecom operators split over regulator's order

Dec 13, 2007, 16:04 GMT

New Delhi, Dec 13 (IANS) A rift has opened among mobile telephony operators using GSM (global system for mobile communications) technology a day after the telecommunications regulator directed the government to start issuing start-up radio frequency to some operators.

The Telecom Appellate and Disputes Settlement Tribunal (TDSAT) Wednesday directed the Department of Telecommunications (DoT) to start allocating start-up spectrum of 6.2 MHz to operators.

The TDSAT directive is bound to upset Bharti Airtel, India's largest mobile telephony operator, which wants much more spectrum to expand its services.

However, it spells good news for other GSM operators such as Vodafone Essar and Idea Cellular, which will get start-up spectrum in six and two telecom circles, respectively.

GSM representative body Cellular Operators Association of India (COAI) is mulling approaching the Delhi High Court.

'Since it is an interim order given by TDSAT, the (GSM) operators can definitely approach the high court. This is something very seriously being decided over. A decision on this will be likely to be taken by early next week,' a highly placed source, who declined to be named, told IANS.

'In any case, a difference of opinion is quite evident among the GSM players after all these,' the source added.

Radio frequency is the lifeline of telecom operators for business development and expansion.

The need for radio spectrum has emerged due to tremendous growth in the number of mobile phone subscribers.

India is adding about eight million subscribers a month.

The issue has even induced Prime Minister Manmohan Singh to step in, who said shortage of spectrum can act as a constraint for the growth of the industry.

He stated this at an industry meet Wednesday, where he also emphasised India should follow the example of other countries where allocation of radio waves earns significant revenues for the government.

© 2007 Indo-Asian News Service