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Govt denies spectrum deal beyond 6.2 MHz
BS Reporter in New Delhi
 
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March 11, 2008 09:40 IST
Communications Minister A Raja on Monday told Parliament that there was no "contractual agreement" between government and telecom operators to allot spectrum beyond 6.2 MHz, a move that could hurt GSM players like Bharti, Vodafone and Idea Cellular [Get Quote].

"There is no contractual agreement to give spectrum beyond 6.2 MHz. We are releasing more spectrum based on subscriber base as suggested by the Telecom Regulatory Authority of India (Trai)," Raja said in the House while replying to a question.

Spectrum is radio frequency used for offering wireless telecom services.

Currently, spectrum allocation norms, which were revised in August 2007, are being followed while the Telecom Engineering Centre (TEC) report is awaited.

The minister said that the GSM lobby Cellular Operators Association of India (COAI) had expressed grievances over the new allocation norms as they wanted old methodology to be continued.

Raja also ruled out auctioning of spectrum saying this was not feasible based on previous experiences, especially in 1993 when operators were not able to fulfill their roll out obligations. Since then revenue sharing regime is being followed for spectrum charges.

"At present the service providers are paying spectrum charges based on percentage/share of adjusted gross revenue (AGR). The pricing of spectrum is reviewed from time to time, taking into account various relevant aspects, and suggestions thereof," the minister said.

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