CDMA spectrum in dire straits, will GSM replace it?

A big question mark has been put on the future of CDMA based mobile services in the country with the recent suggestion of the telecom regulator that there is no need to auction any more spectrum in the 800 MHz band.  This suggestion, which is yet to be accepted by the government, casts a shadow on the future plans of companies like Tata Teleservices and Sistema of Russia in this space.

It could also mean an additional source of radiowaves for spectrum starved operators like Bharti Airtel and Vodafone among others reports CNBC-TV18’s Malvika Jain.

Also Read: Averaged many valuation methods to get spectrum rate: TRAI
The message from the telecom regulatory authority of India is pretty dire. Mobile operators using the CDMA or code division multiple access technology for offering mobile services need to either ramp up their act or quit these valuable radiowaves.
Rahul Khullar, chairman, TRAI says, “People sitting with 5 MHz in the 800 band or 3.75 MHz are capable of dealing with their customers. In fact, their customers are declining so rapidly that one particular operator has even volunteered to surrender 800 MHz spectrum.
Acoording to Ashok Sud, secretary general, AUSPI, the operator that the TRAI chairman seems to be referring to is Tata Teleservices. TTSL has given a letter by the context has to be understood. “I can guarantee that TTSL won’t surrender spectrum if one time fee is not levied,” he adds.
The one time fee issue is a contentious one. However, presently the TRAI is pressing a larger case.
“Let us get the facts straight. The real issue is what is the opportunity cost of 800 MHz spectrum. Can I use segments of 800Mhz to create an extended GSM band? If I can, its value would be at least four to five times that of the existing value of this band,” adds Khullar.
To this Sud adds that they have written to the telecom minister that first of all creating the e-GSM band out of the CDMA operator’s band limits future growth of CDMA operators because it assumes that CDMA operators will not want any CDMA spectrum in future.
While the fate of these recommendations would be known in the next three-four weeks, the India telecom regulator's move has global repercussions on the future of CDMA and its pioneer Qualcomm, which has over the past few years pushed the envelope on this spectrally efficient technology to newer frontiers.