TRAI verdict on spectrum welcome, reserved price high: Sunil Mittal

New Delhi, Sep 27 (UNI) Bharti Airtel today said that Telecom Regulatory Authority of India's (TRAI) comprehensive approach to 3G spectrum allocation is a welcome end to the piecemeal policy, while expressing concern over the high reserved price.

''The reserved price seems very high, even if we were to consider the limited available spectrum. For those interested in countrywide 3G licences, the reserved price would be more than Rs 1,000 crore which is a serious disincentive especially when it comes to rural penetration,'' Bharti Airtel Chairman and MD Sunil Mittal today said.

He appealed to the Department of Telecommunications (DoT) to review and seriously lower the threshold recommended.

Reacting to the regulator's verdict on the much-awaited 3G spectrum allocation policy, Mr Mittal expressed happiness that the regulator has recommended a comprehensive approach to spectrum allocation which is a welcome end to the piecemeal spectrum allocation policy.

UMTS 2.1Ghz 3GSM (WCDMA) has been accepted as the way forward.

CDMA has been given the option of coming into the 800/450 and the 1900 mixed band has not been accepted as it would cause interference with the 2.1 Ghz, he said.

However, he hoped quick decisions would be taken on the 3G spectrum allocation so that the country would be able to benefit from the enhanced speeds and mobile data services.

Earlier, the regulator said the allocation and pricing of the spectrum would be such that would enable all telecom service licence holders including both GSM and CDMA, to roll out the facilities to the consumers.

TRAI Chairman Nirpendra Mishra said initial estimates indicate that the total pan-India revenue base of 3G and Broadband Wireless Access (BWA) would be Rs 1,400 crore.

Spectrum will be auctioned circle wise across 23 telecom circles in the country, he said and added that all the telecom players would be included.

''Nobody will be eliminated,'' Mr Mishra said.

He informed the 3G services would be expensive initially but with increasing competition from the current 2G services, it will be more affordable to the masses.

3G entails high speed access and streaming video apart from voice.

The whole exercise is not tilted in favour of any single operator, be it CDMA or GSM, but is ''totally balanced and ensures a level playing field,'' he had said at a press conference earlier in the day.

As far as subscribers are concerned, both CDMA and GSM services on 3G will be given at the same time.

On broadband he said there will be a spurt in such services in the country and providers may even bundle other technologies like WIMAX while offering them to the subscribers.

''Spectrum identified for 3G should be treated as a stand-alone allocation and not as an extension of earlier spectrum allocation of 2G.'' Mr Mishra said the base price for acquisition of spectrum for 3G services was recommended at Rs 80 crore for the category A circles--Delhi and Mumbai, Rs 40 crore for category B circles -- Chennai and Kolkata, and Rs 15 crore for category C circle.

TRAI has also given high priority to Broadband Wireless Access (BWA).

Telecom and IT Minister Dayanidhi Maran had earlier said today that the 3G spectrum services would be launched in India in the second half of 2007.

UNI RA DKS KP1959