The TRAI consultation paper has also dealt with roll out obligations and performance bank guarantee, and private leading operators want to do away with these stringent conditions, while state-run mobile operators would like the clause to continue as roll out obligations would lead to networks expansions.

To improve quality of services, operators want adequate spectrum. It is of paramount importance to ensure adequate spectrum for existing licensees before considering the spectrum requirements of new licensees.

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According to COAI, if the number of operators increases, the amount of spectrum that each operator can access reduces which will not only have a negative impact on QoS but will also entail much higher investments in infrastructure to re-use the limited spectrum.

Another key issue while determining the maximum limit on number of operators in any service area is the status of spectrum availability. If the number of operators increases, the amount of spectrum that each operator can access reduces as the total spectrum available is limited in each service area. If the share of spectrum per operator is reduced, then each operator will have to invest more in their capital, ie in the network infrastructure to put a larger number of BTSs in the same area in order to reuse spectrum more. While this might be desirable to an extent from the point of view of encouraging spectrum efficiency, it is not conducive to the development of the sector.

There is also consensus among major operators that the 10% limit on cross-holding of licensees in the same service area should be retained. TRAI is looking at revising the controversial crossholding cap, that blocks one company from holding more than 10% stake in two operators in the same circle. Despite all issues, India wants the telecom market to flourish further. Indian telecos want spectrum without further delay. Companies should also be allowed to offer technologies of their choice, but not at the cost of the government.

The immediate concern before the service providers is to urgently enhance the reach of service to the uncovered areas. Sixty percent of the geographical area and 40% of the population is yet to be covered. Huge amount of capital expenditure is required towards achieving this objective. Low ARPU implies that operating margins are not adequate enough to meet this objective.

We cannot afford a scenario where an operator is given excess spectrum with lesser subscribers in merged entity scenario and other operators are deprived despite their entitlement due to non-availability of spectrum.

TRAI is expected to announce its recommendations shortly and this may trigger further debate among the operators.

Baburajan K
baburajank@cybermedia.co.in

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