New spectrum policy favours old operators: TTSL

Tata Teleservices on Saturday said that all operators, including new and old ones, should be given 6.2 Mhz spectrum, and over and above that they should be charged as per the market price. "In line with what we have been stating during the consultation process held by Trai in the first half of  2010, we would re-emphasize that all operators be given 6.2 Mhz spectrum in a manner that those waiting for start-up spectrum are first allocated the same," TTSL said in a statement.

TTSL's statement comes in the wake of telecom minister Kapil Sibal's decision to delink spectrum from the licence and reduce the contract limit of spectrum to 4.4 Mhz for new operators. For the old operators the limit has been retained at 6.2 Mhz.
Sibal said that henceforth all spectrum, initial as well as additional, would be given at market driven price.
"...Those who have excess spectrum are charged for the same, preferably retrospectively, to bring all operators to a level-playing-field," TTSL said.
It added that consequent to bringing the level-playing-field, the spectrum beyond 6.2 and up to the limits specified by Trai in May 2010 could be charged by DoT in line with Trai's recommendations.
Besides Tatas, one more operator, who did not wish to be identified, also opposed the move to limit the contracted spectrum to 4.4 Mhz saying the new regime would give huge advantage to old operators, who have millions of subscribers in their kitty.
This (new regime) would make new operators' operations financially unviable.
Most of the other new operators declined to comment on the new policy.
"Having waited for three years since others received their spectrum, it is urged that the government quickly allocates the spectrum to those who have been waiting since long," TTSL asserted.