Rift Between Reliance Communications And Tata Teleservices On 3g Spectrum Policy

[vmsanghrajka 0]

NEW DELHI, AUG 18: A serious fall-out between CDMA biggies Reliance Communications and Tata Teleservices Ltd (TTSL) on the allocation and pricing of 3G spectrum has weakened the CDMA lobby in their representation before the Telecom Regulatory Authority of India (Trai) on the issue.

As a result of discord, the CDMA industry body Association of Unified Service Providers of India had to opt out of the joint meeting convened by Trai with GSM body COAI on Friday. The row now threatens the future of Auspi.

The spat intensified late Friday as TTSL independently wrote to Trai reiterating that CDMA operators be allotted 3G spectrum in the 1900 Mhz band. It also sought that an entry fee be charged from the operators for the spectrum. In the past, Tata group chairman has suggested that the 3G entry fee should be Rs 1,500 crore.

Sources close to Reliance said Tatas have been taking totally different stand on major issues, be it 3G spectrum allocation and pricing, or subscriber verification, leading to their “complete isolation from the industry”. Industry sources said that Auspi backed out of the meeting at around noon when the Tatas and Reliance stuck to their respective stand on allocation and pricing, making it difficult for Auspi to project a unified stance.

Sources said TTSL has little trust in Reliance’s stance because the latter has applied for GSM spectrum and is straddling multiple technologies. “There appears to be some dissonance in the CDMA lobby with Reliance seeking to commence GSM operations also,” an industry source said.

Reliance’s stand on 3G spectrum pricing has been that the government should charge Rs 150 crore for all A circles put together, Rs 100 crore for all B circles and Rs 50 crore for C circles. In addition, it has advocated revenue share as per the present structure.

Reliance’s position is quite similar to COAI’s, which maintains the industry should be made to pay only the amount required for reclaiming of spectrum from defence forces. COAI believes high entry fee would make the 3G services unaffordable for the masses, which would be against the objectives of the government.

URL: http://www.financialexpress.com/fe_full_st...ntent_id=137760

Source: Financial Express

[hritik123 4]

anyone will be suspicious if you try to play BOTH WAYS, even reliance subscribers are looking at ambani when he will dump them for GSM

[Arun 795]

Reliance to ask Tata Tele to fall in line on 3G

Business Standard / New Delhi August 21, 2006

Interconnect with industry, company to tell fellow CDMA operator.

Reliance Communications will soon write a letter to fellow CDMA operator Tata Teleservices asking it to toe the industry's line on the pricing of 3G spectrum.

The letter comes after differences over the 3G pricing led to CDMA operators' body Association of Unified telecom Service Providers of India (AUSPI) skipping the meeting called by Telecom Regulatory Authority of India (Trai) to discuss the issue of 3G pricing.

Sources familiar with the development said the letter would suggest that Tata Teleservices “interconnect” with the industry and participate in the harmonious growth of the telecom sector and national teledensity targets. When contacted, Reliance Communications officials declined to comment.

Reliance Communications is also writing a letter to Trai to reiterate how the economic model it had suggested would help make 3G services affordable and meet the teledensity target of the government.

While Tata Teleservices has suggested a Rs 1,500-crore 3G licence fee for a pan-India rollout, Reliance Communications has suggested a hybrid model and a graded fee structure aggregating to a sum of Rs 300 crore for a national 3G licence.

It says with seven national operators, it would cover the government’s costs of refarming defence spectrum. Differences between the two operators on the bandwidth and pricing of 3G had led to AUSPI pulling out of the Trai meeting.