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Which of the following technologies/concepts are likely to witness significant traction this year?
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Tele Data

Mobile Subscribers Yearwise comparision

Industry views

October 15, 2006
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Bharti Airtel
The reserve price seems very high, even if we were to consider the limited availability of spectrum. For those interested in countrywide 3G licences, the reserve price would be more than Rs 10 billion, which is a serious disincentive, especially when it comes to rural penetration. We appeal to DoT to review and seriously lower the threshold recommended.

Vikram Mehmi, President and CEO, Idea Cellular
If 3G spectrum were to be released on the recommendations of TRAI, Idea would definitely apply for allocation as per the rules. Idea is committed to being a long-term player in the telecom market. However, we believe that India is not yet ready for relatively more expensive 3Gtype of applications.

Darryl Green, CEO, Tata Teleservices
TRAI's recommendations are fair to all participants and are progressive. We are happy that the regulator has maintained an evident technology-neutral approach. The recommendation on pricing and auction of spectrum clearly establishes that spectrum is recognised as a scarce resource and must be utilised efficiently. TRAI's proposal on vacating spectrum in order to refarm GSM operations and in the process allocate additional spectrum in the 800 MHz band for CDMA players is a much-needed and eagerly awaited solution.

T.V. Ramachandran, Director-General, COAI
On the whole, the TRAI recommendations are slanted in favour of CDMA and are disadvantageous to GSM. The auction route and high reserve price would be very detrimental in reaching the benefits of 3G in an affordable manner to the citizens of India. The government should seek to enhance its revenues for 3G through usage and not by imposing high initial fees. There should be spectrum usage charges as a percentage of revenue share. Moreover, 3G is being viewed as a standalone service. It had already been settled through earlier regulatory consultations that 3G should be viewed as a continuum or extension of 2G. The spectrum acquisition fee for each carrier in the 800 MHz band given to CDMA for its 3G EV-DO services, which is based on pro-rating from the second highest winning bid in the 2.1 GHz auction, is grossly unfair and incorrect. It should be noted that the 800 MHz spectrum is far more valuable than 2.1 GHz.

Perry LaForge, Executive Director, CDG
The CDMA industry commends TRAI for its work towards balancing the needs of all operators and technologies, and reaching an equitable solution that will benefit India.

Mahesh Uppal, Telecom Analyst
"The new recommendations reflect both the reality of the marketplace and events related to subscriber acquisition. If designed correctly, auctions can be very effective. Auction for the fourth mobile licence in India is a case in point. The reserve price proposed by TRAI isn't too high for two reasons. One, the Tatas had earlier offered to pay the same amount, so it would make sense to charge at least that much. Two, as there are many players in the market, charGing for spectrum will ensure discipline and proper utilisation of resources.

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