Public and private sector GSM operators in the country have demanded an additional 13.2 MHz of spectrum (radio frequencies that enable wireless communication), as against 45 Mhz that may be made available over the next couple of years only.
The CDMA operators - mainly Reliance and Tata - have also asked for additional spectrum (around 5 MHz in the 800 MHz band and another 20 MHz in the 1900 MHz band).
On the face of it, the demand for additional spectrum seems easy to meet. While the original eligibility per operator for spectrum was 4.4 MHz (a total of 17.6 MHz for four operators), the existing four operators in the metro circles have, over time, been granted over 36 MHz, nearly double.
At the time of beginning services in the mid-90s, mobile operators were given 4.4 Mhz; subsequently, additional chunks of spectrum were allotted in phases.
The group of ministers on spectrum, which Defence Minister AK Antony now chairs, may or may not meet on Wednesday to discuss the issue. The group had been set up to facilitate freeing of spectrum, currently being used by government agencies, including the armed forces.
The issue at hand does not just pertain to getting the defence forces to vacate spectrum in lieu of money, but the long-term spectrum planning for the country. From the existing 200 million, the number of mobile users is expected to touch 450 million by 2010 and 550 million by 2012.
For that to happen, the GoM will also have to reconcile the needs of new applicants, who have not got even the initial 4.4 MHz they are eligible for. Some analysts believe that greater competition is needed so as to ensure even lower tariffs in the long term.
In a presentation to Communications Minister A Raja on May 30, the Department of Telecom said that some existing usage of spectrum needed to be phased out and replaced with newer and efficient systems.
The annual spectrum revenue for the government has increased from Rs 25 crore (Rs 250 million) about a decade ago to Rs 2,000 crore (Rs 20 billion) per annum now. Since June 2004, government agencies are also being charged for spectrum usage and most of them have started to pay.
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