Analysis of Global Challenges and Issues for Spectrum Allocation in India

Abstract

Spectrum is at the centre of almost all the controversies in the booming Indian telecom industry. And, there have been spectrum-related standoffs over the past couple of years, between companies, regulator Trai and the communication ministry. Currently, India is the only country that allocates spectrum to telcos on the basis of their subscriber bases. This practice has led to charges that several mobile operators inflate subscriber numbers to corner the resource. The lack of transparency in dealing with the issue also led to allegations that certain operators got radio frequencies out of turn and without having the requisite number of subscribers. The telecom ministry's latest assessment reveals that only four private players can be given airwaves for offering these high-end services in Delhi, while in Mumbai, there is enough frequency for eight players. Key circles, such as Andhra Pradesh, Karnataka and Tamil Nadu, have space for 11 private players each. A minimum of six private operators can be given these airwaves in all circles except in Uttar Pradesh, Himachal Pradesh, North East, West Bengal and Rajasthan. India has more operators per circle than anywhere else, higher network costs, and services nowhere near as good. Consequently, operators have to use more equipment inefficiently because of limited spectrum. The consultants estimate that India's spectrum usage is eight times more intense than in the UK, Hong Kong or Singapore. Operators in these countries ha.ve from 16 MHz to 26 MHz, the latter for the Netherlands, the UK, Singapore and Malaysia; Pakistan has 14 MHz.