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Rediff.com  » Business » Spectrum: Qualcomm pats Trai

Spectrum: Qualcomm pats Trai

Source: PTI
October 11, 2006 19:32 IST
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US telecom major Qualcomm on Wednesday said the recommendations of TRAI on spectrum allocation for 3G service are fair and forward looking but termed the existing criteria of allocating spectrum linked to subscriber base as "negative approach".

"Telecom regulator, TRAI is fair in its approach by recommending technology as well as service neutral spectrum allocation. This will lead to a very-very stable regulatory regime and it is in line with international practices," Parag Kar, director (government affairs), Qualcomm-India, told PTI.

But Qualcomm expressed serious concerns with existing criteria of allocating spectrum linking with subscriber base saying, "It is leading to negative motivation and the rural area will be affected worst. As there (in rural areas) you do not find many subscribers and this will affect penetration of mobile service in rural India.

Due to this today teledensity in urban areas is around 40 per cent while in rural areas it is extremely low at 2-3 per cent," he added. With regard to 3G spectrum recommendations, Kar said, TRAI has followed an extremely neutral policy for both quantum as well pricing of spectrum.

TRAI had suggested charging a maximum Rs 80 crore (Rs 800 million) as base price from operators for allotting spectrum to roll out next generation (3G) mobile services. Base price for acquisition of spectrum for 3G services (has been) recommended at Rs 80 crore for category 'A' circles, Delhi and Mumbai, Rs 40 crore (Rs 400 million) for category 'B' circles and metro Chennai and Kolkata and Rs 15 crore (Rs 150 million) for category 'C' circles.

Qualcomm said TRAI's current 3G recommendations provide equal opportunities of 3G spectrum to service providers at market determined prices.

"This approach will enable the service providers to value spectrum and hence use spectrum more efficiently and will also prevent hoarding," Kar said adding this approach would make the technical criteria (like subscribers based) for measuring spectrum efficiency redundant, which has proved counter productive in the past.

Qualcomm has hailed TRAI's suggestions but said, "we also feel that more can be done to create a level playing field within the 2G spectrum bands to increase fair competition."

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