3G, 2G split: GSM, CDMA lobbies clash

NEW DELLHI: The GSM (global systems for mobile communications) and CDMA (code division multiple access) telecom players have once again clashed, this time over the issue of segregation of 2G (second generation) and 3G (third generation) revenues for paying an annual fee to the government for spectrum usage.

The two groups, represented by their respective associations COAI and AUSPI, submitted their presentations to the department of telecommunications (DoT) on Wednesday, to put across their opposite views on the matter.

Recently, the DoT amended its 3G (third generation) telecom guidelines and stipulated that telcos must pay 1% of their 3G revenues annually as spectrum usage charge to the government, after a moratorium in the first year.

That is, for calculating the spectrum usage charge, 2G service revenues would not be taken into account even if a player offered both 2G and 3G facilities.

Following objections raised by the Telecom Regulatory Authority of India (Trai) against segregation of 2G and 3G revenue, DoT had set up a committee to look into the matter. The committee is yet to take a decision.

The Cellular Operators Association of India (COAI), representing GSM players, is believed to have said in its presentation that segregation is already being followed in India for GSM and CDMA under the policy of dual allocation of spectrum. Plus, it is being followed in Hong Kong and the UK. COAI added that with the introduction of mobile number portability, segregation of revenues will become inevitable.

Opposing the Trai view, COAI pointed out that the regulator's opinion that segregation of 2G and 3G revenues is undesirable was in a scenario when it had recommended that only existing operators bid for 3G spectrum. Now, however, new players are also being allowed to bid for 3G spectrum.

The Association of Unified Service Providers of India (AUSPI) has, on the other hand, argued that "the 2G and 3G revenue streams are indistinguishable". It said, "All network elements except radio access are common in 2G and 3G networks." According to AUSPI, separation of 3G and 2G revenues in a foolproof method is not practical and not above board.

On other countries, AUSPI has pointed out that the idea of segregation of 2G and 3G revenues was dropped by Hong Kong, France, Greece and the European Union.