CELL WAR

What is spectrum?
Spectrum consists of electromagnetic radiations used to transmit voice and data. Spectrum is backbone of any telecom network and is considered a scarce limited natural resource.

What is the difference between CDMA and GSM?
GSM Global System for Mobile Communications and CDMA Code Division Multiple Access are both carrier technologies. GSM was originally developed in Europe, CDMA in USA. Both are digital technologies. The difference lies in the way they use spectrum. GSM users are assigned a specific time slot for transmission and reception. CDMA uses a code to identify transmissions and different codes are used for the up-link and down-link. While neighbouring cell towers in GSM must talk on different frequencies, those in CDMA usually use the same frequency. CDMA is much more spectrum efficient than GSM. However, GSM is much more commercially successful and is used in a large number of countries. Due to this reason many CDMA operators are shifting to GSM worldwide.

Why are GSM players represented by COAI upset?
They have two main objections:
l GSM players say that the existing licence conditions do not allow mobile operators to use alternate technologies.
l They also say DoT cannot change the spectrum allocation criteria and make it more stringent for them. The GSM companies have alleged that DoT is changing rules to 8220;help one large CDMA player8221;. Reliance Communications, presumably the company they are hinting at, on its part, has accused GSM players of having monopolistic attitude.
COAI also contends TEC prepared its report in a non-transparent manner. 8220;It is submitted that the entire TEC exercise and report was rushed through with unseemly haste inasmuch as TEC did not wait for the full inputs from the GSM industry and proceeded to carry out and complete the same based on alleged scientific analysis,8221; COAI has said in its petition to TDSAT.
In a letter to DoT Secretary D S Mathur, Bharti Airtel8217;s Sunil Mittal said, 8220;We would not claim to be experts in our sector but can certainly claim some degree of knowledge to challenge the absurd proposed spectrum allocation which has been put forth by the Telecom Engineering Centre. The outcome of the hurried exercise at TEC is a sad commentary on how international and time tested norms for spectrum allocation are being ignored.8221;
In his rebuttal in the form of a letter to the Prime Minister Reliance Communications Chairman Anil Ambani said DoT8217;s policymaking process was completely transparent and the GSM operators were adopting 8220;an anti-consumer, anti-competitive stance8221;. He wrote, 8220;The motivated game plan of a few large GSM operators in the country is simple8212;prevent the entry of new players in the GSM space, hoard spectrum, and limit new competition, indulge in anti-consumer practices such as cartelisation and price fixation, delay implementation of all new initiatives indefinitely through a combination of litigation and policy uncertainty to enhance their own dominance, and make the cost of entry for new players prohibitive and unviable.8221;

What does the National Telecom Policy NTP 99 say on this issue?
On spectrum, NTP 99 says: 8220;Availability of adequate frequency spectrum is essential not only for providing optimal bandwidth to every operator but also for entry of additional operators8230;It is proposed to review the spectrum utilisation from time to time keeping in view the emerging scenario of spectrum availability, optimal use of spectrum, requirements of market, competition and other interests of public. A November, 2003, amendment to NTP 99 introduced the Universal Service Access Licence. On technology the amendment says: 8220;There shall also be the following categories of licences for telecommunication services: Unified Licence for Telecommunication Services permitting Licensee to provide all telecommunication/telegraph services covering various geographical areas using any technology.8221;

What is maximum spectrum available to GSM operators?
The licences do not define the maximum spectrum that an operator can possess. As per the existing merger guidelines, the maximum spectrum that can be held by a merged entity in case two companies are merged is capped at 15 MHz per service area of Metro and Category A service areas and 12.4 MHz per operator per service area in Category B and C circles. Some operators are already eligible to get 15Mhz of spectrum in some areas under the existing subscriber-based criteria.

What are the international standards on allocation?
There are no international standards. In a representation to Communications Minister Raja, COAI has pointed out that average spectrum allotted to each operator in France and Spain is 36 MHz each. In UK each operator has been allotted 26 MHz.

Is something wrong with spectrum management?
TRAI has said there is need to work on a new scientific system of allotting spectrum. The biggest problem with spectrum management is that DoT is responsible for policymaking, allotting spectrum and management. Ideally, spectrum management should be under a specialised body. In many countries spectrum allocation is under a regulator. When licences for GSM services were granted in 1994, no one could imagine how mobile telephony would grow. Therefore, there was no scientific method of allotting spectrum and its management. Even today, a significant part of spectrum lies with the defence forces.

What is number portability?
Number portability allows a subscriber to retain his/her number even after switching service providers. Without number portability, a large number of subscribers are forced to remain with their operators even if dissatisfied with the services because of the hassles involved in changing the number. While number portability cannot be implemented on a nationwide basis immediately, it will be initially implemented in the four metros, DoT has said.

What would be its impact on spectrum?
Number portability will not have much impact on spectrum. However, it will be of great convenience to consumers.

What are 3G and WiMAX?
3G mobile communications is the generic name for the next generation mobile networks that allow high data speed. They are capable of supporting services such as high resolution video, multimedia services in addition to voice, fax and conventional data. WiMAX is an evolving technology that promises to offer high speed wireless data transfer. Both services will be offered in spectrum band other than that of GSM. So, they will not have any impact on the present controversy on spectrum between CDMA and GSM players.

What is likely to happen now?
As the matter is before TDSAT, one will have to wait for the TDSAT verdict. The government may also try to get all the operators on a table and sort out the issue through discussions.

8212;Text by Manoj Gairola, Illustration by Sudipto Sharma