Introduction
By 2003, the telecom landscape in India had become increasingly complicated, with numerous players holding different types of licenses. Battle lines were drawn between Cellular Mobile Telephone Service (CMTS) and Basic Telephony Service (BTS) operators. Since BTS operators were given the same quantum of spectrum in similar bands, they were fully capable of offering comparable services at par with CMTS operators. This capability led to innovative yet controversial practices, such as the over-the-air dynamic activation of WLL (Wireless in Local Loop) subscribers outside their Short Distance Charging Area (SDCA), leading to virtually full roaming capabilities. This competition and these workarounds led to litigation and eventually resulted in the Department of Telecommunications (DoT) issuing guidelines for the Unified Access Service License (UASL) on 11th November 2003.
License Fees
The new guidelines allowed both CMTS and BTS operators to migrate to the Unified License Regime, theoretically making the licensing structure technology-neutral. However, this decision ultimately divided the industry along technology lines due to differing spectrum assignment rules for GSM and CDMA operators. CMTS operators behaved as if they were married to GSM technology, while BTS operators aligned themselves with CDMA. Operators should use technology as a tool to deliver services and not act as its proponents—a direct outcome of faulty regulation.