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Tata Tele to file petition against DoT in TDSAT: Sources
Published on Mon, Dec 10, 2007 at 14:37   |  Updated at Tue, Dec 11, 2007 at 09:03  |  Source : CNBC-TV18

The spectrum war seems all set to hit the next level. CDMA player Tata Tele is gearing up to file a petition with the telecom tribunal TDSAT(Telecom Disputes Settlement And Appellate Tribunal) against the department of telecom. The petition will challenge the DOT's decision to award spectrum to CDMA players in a 2:1 ratio CNBC-TV18 reports, quoting sources.


The petition also says that GSM operators who have occupied more than 6.2 MHz (megahertz), which is more than the contractual limit they are entitled to occupy should be made to vacate. It is not only the Tatas but even Anil Ambani of Reliance Comm has raised this issue several times and even wrote to the PM on this issue. So the CDMA operators coming together, demanding the GSM operators to vacate excess spectrum, they think they should be doing. The petition would also ask DoT to continue processing CDMA applications, sources said.

Tata Tele had applied for GSM spectrum for 20 circles, they add. The petition would be to challenge DoT's 2:1 spectrum allocation for CDMA operators, sources said.

The GSM industry has for long been averse to the idea of bidding for spectrum, but a changing regulatory environment has made India’s largest GSM operator shift stance.

 

In a letter to the DOT secy D. S. Mathur, Bharti's joint MD Akhil Gupta says that the company is willing to offer Rs 2650 crore for 4.4 mhz of GSM spectrum across all circles. This is the same amount of spectrum that was given to CDMA major RCom for Rs 1650 crores. The price of Rs 1650 crores was discovered through an auction in 2001. But Bharti says it is willing to pay a minimum of Rs 1000 crores over and above the 2001 price. The company says its offer for Rs 2650 crores be treated as an initial bid.

 

That could well put pressure on the DOT to reconsider its criteria for allocating spectrum.

 

Minister Raja though has ruled out auctions for 2g spectrum even though he claims to be in favour of it because it is not legally tenable. But that notwithstanding Bharti's move will raise the decibel levels and may be a trigger for a potential bidding war for spectrum. Not surprisingly the opposing CDMA lobby says Bharti's move is an attempt to mislead. RCom issued a statement saying Bharti seems to be pushing for a second license even though its not entitled to it..

The next hearing of this case is slated at the TDSAT on Wednesday and that could well give an indication of how long it will take to restore some balance in the sector.

CNBC-TV18 Disclaimer

This information is source-based and has not been provided to the stock exchanges.

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