Mobile communication, till date, was the exclusive domain of cellular service providers, but with the recent TRAI recommendations on limited mobility, even basic service providers in the country can provide mobility to their subscribers within SDCA. As per the recommendations, the FSP can provide mobility to their subscribers by charging Rs 1.20 per 180 seconds for outgoing calls with free incoming calls.

The rush of 16 service providers bidding for 120 circles is indicative of the fact that the majority of the subscribers will see limited mobility as full mobility, as they are not going out of the SDCA. Pramod Saxena believes that not only do the FSP have full mobility, but they also do have better interconnect agreements making the business model of FSP look more attractive than the fourth service provider.

But, Anil Joseph, manager, telecom practice, Frost & Sullivan (I) Pvt. Ltd., feels that GSM operators are overestimating the impact of limited mobility, as CDMA handsets are bulky, noise level is on a higher note and there is a limitation on distance.

Anupam Srivastava feels that limited mobility will affect the sentiments of the fourth license in cellular, however the medium term impact is difficult to predict, as it would depend upon the relative pace of change in the two technologies—GSM and CDMA. The tremendous economies-of-scale and competition in GSM would reduce costs even below the CDMA levels. WLL tariffs, as announced, are not remunerative and the final rentals as announced by TRAI will be a crucial factor, added Srivastava.

Industry experts feel that as the limited mobility issue is pending before the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) and the non-decision by the DoT on the future of the terminated Punjab license of Evergrowth Telecom, will have a negative impact on the bidding of the fourth cellular license in that circle. The service provider has to clearly know how many players are there in the market, before one can decide on how much to bid.