GSM lobby shatters Reliance GSM dreams

TRAI, DoT and Ministry of IT have a unique spectrum allocation policy. Call it the upper hand of early GSM mobile operators or the short sightedness of TRAI and its associates.

We have a subscriber-linked spectrum allocation criteria which is far from perfect as it does not factor in subscriber density as well as intra-circle differences in traffic intensity. Now that Air Force is finally releasing a band of spectrum, Vodafone-Hutch-Essar, Aircel and Idea are likely to consume bulk of it with Reliance having to take the leftovers. [Reliance was late in paying the fees to get itself a slot in the Queue.] This is assuming that Spectrum is available with imemdiate effect. However, this is unlikely to happen.  October / November is when the real allocation will be done. By then their will be more demand from existing GSM operators thus leaving nothing for Reliance to pursue its GSM rollout.

Reliance GSM can get spectrum in the following circles if allotted imemdiately.

Delhi, Mumbai, Chennai, Karnataka, AP, Gujarat, Maharashtra, Tamilnadu, Kerala, Haryana, Punjab, UP(West), J&K, and Rajasthan. Reliance already has GSM presence in other circles except UP(East) where it won’t get any spectrum.

If Spectrum allocation is made in late 2007, Reliance will get only in the following cricles

Chennai, Karnataka, Haryana, UP(West) and Rajasthan.

So what will Anil Ambani’s next move be ? Enhance CDMA operations for now.

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31 Comments

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