Introduction to New Cellular Licenses
The year 2007/08 marked yet another turning point in the Indian telecom landscape. Similar to how the “Limited Mobility” battle led to the Unified Access Service License (UASL) guidelines of November 2003, the battle for “Dual Technology” paved the way for the new cellular licenses issued in 2007/08. But what motivated the CDMA operators to seek GSM spectrum? The answer lies in the technology-specific spectrum assignment policies of the government, which had created a distinct disadvantage for CDMA operators. This part of the series delves into the events that led to these new licenses, the motivation behind the shift by CDMA operators, and the initial barriers faced by new players in the market.
Motivation for CDMA Operators to Seek GSM Spectrum
The government’s spectrum assignment policies were heavily skewed against CDMA operators, limiting their ability to compete effectively. According to the Wireless Planning & Coordination (WPC) Wing’s orders dated 10th December 2004 (for CDMA) and 29th March 2006 (for GSM), CDMA operators were allotted approximately half the spectrum compared to GSM operators for similar subscriber numbers. The impact of these orders is evident in the chart showing that GSM operators were assigned twice the spectrum compared to CDMA operators up until June 2007. [Reference: TRAI’s Recommendation Dated 28th August 2007, Pages 158-164]
