19 MPs sign letter to PM, seek return of surplus spectrum from GSM cos

The spectrum war has now spilled over to political parties. Nineteen MPs from various political...

The spectrum war has now spilled over to political parties. Nineteen MPs from various political parties today submitted a letter to Prime Minister Manmohan Singh seeking the return of surplus spectrum from GSM operators. The Shiv Sena, Telgu Desam Party (TDP), Samajwadi Party (SP) and

Bahujan Samajwadi Party (BSP) have already raised this issue.

“For the sake of fair competition, consumer benefits in terms of lower tariff and better services, it is imperative that the government allows new players in the cellular mobile sector,” a letter signed by 19 Members of Parliament said. The MPs include N Y Hanumanthappa, D Narbulla and D Vittalrau (Congress), A V Bellarmin (CPM), M Appadurai (CPI) and Gingee N Ramachandran (MDMK).

They have supported the recommendations of the Telecom Engineering Centre and regulator TRAI, saying their technical capabilities are second to none. The GSM operators have questioned these recommendations for the sole purpose of retaining their hegemony, they said.

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Last week, the Shiv Sena had written a letter to the prime minister advocating auctioning of spectrum. It argued that the auctioning of spectrum would bring good money to the Exchequer. “By the method of auction, the Exchequer may earn Rs.40,000 crore or even more. This amount will go a long way to implement schemes for poverty alleviation and public services, including infrastructure,” the party’s leaders wrote.

The matter was also debated in both the Houses of Parliament last week. The Samajwadi Party accused the leading GSM service providers of hoarding air waves and blocking the entry of other players. Communist Party of India (Marxist) MP Sitaram Yechury asked the Government to safeguard the interests of State-run telecom companies Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) while allocating spectrum. Incidentally, Sunil Bharti Mittal, chairman of Bharti Airtel, had opposed the allocation of spectrum to the two PSUs.

Demanding a CBI inquiry, Samajwadi Party leader Amar Singh alleged, “Some GSM operators who earlier got the spectrum free of cost are now hoarding it, while those who want to launch new operations are awaiting spectrum allocation for which they will have to pay crores of rupees to the Government. These private GSM players have hoarded more than 50 MHz of airwaves as they have been allotted more than their contracted quantity of 6.2 MHz spectrum.”

The GSM and CDMA operators are competing for spectrum. The CDMA operators claim that GSM operators have excess spectrum. The GSM operators say that CDMA operators have wrongly been permitted to offer dual technology and the Government wants to change norms for allotting spectrum so as to give spectrum to CDMA players.