CDMA lobby to urge Trai to auction 800MHz band

NEW DELHI: The lobby body for CDMA mobile operators will shortly write to telecom regulator Trai that it should auction airwaves in the 800MHz band, saying that firms such as Reliance Communications will participate.

CS Rao, president of Association of Unified Telecom Service Providers of India (Auspi) and also a president at Reliance Communications , told ET that India's third largest mobile phone operator has already informed the government of its keenness to expand its CDMA business, given the expected surge in data services.

Trai had last month said auction in the 800MHz band dedicated for CDMA services was not required due to lack of demand, but the telecom department later rejected this view and asked the regulator to recommend a pan-India floor price for spectrum in the band. Rao said Auspi will urge Trai to recommend a base price for spectrum in the 800MHz band at 65% of what has been proposed for the 1800MHz band, because that was the ratio of floor prices fixed for auctions in March. But auctions for 1800MHz and 900MHz bands didn't attract bidders in most circles due to what operators said were high prices.

Sistema Shyam Teleservices, the Indian unit of Russia's Sistema, was the only bidder in the 800MHz band. Now the government plans fresh auctions with lower floor prices. Trai in September suggested a steep 37-60 % cut in the base prices for airwaves in 1800MHz and 900MHz bands. The telecom department (DoT) has also questioned these proposals and Trai needs to give clarifications or fresh proposals in the next few days. DoT will take a final decision at a meeting of the telecom commission on October 29, which will then need to be ratified by a group of ministers and then the cabinet.

Sistema Shyam Teleservices, which operates on the CDMA platform , had also come out against Trai's views, saying the recommendations block future growth of the company both in terms of expanding its operation into other service areas and starting 4G services for which it will need to purchase some more spectrum. Rao said that Auspi would also urge that auction in the 800MHz band be held simultaneously with the other two bands.

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