Following increased lobbying from the incumbent GSM players against grant of additional spectrum up to 6.2 MHz to new & dual technology players, industry association, Association of Unified Service Providers of India (AUSPI) has hit back saying the incumbent lobby is trying to mislead the government by presenting a completely different picture.

“Just because incumbents have benefited from the largesse bestowed to them by the Governments of the past – e.g. being allocated more spectrum than allowed by licence conditions, or changes to interconnection regime etc. – these incumbent GSM operators believe they can similarly influence the Government yet again to take steps that protect their massive profits at the cost of Government revenues, competition and the customer,” says AUSPI.

According to AUSPI various judgements and licence terms clearly state that licence holders are entitled to 6.2 MHz.

AUSPI drew attention to past when the incumbents had paid Rs.1651 crore for 6.2 MHz, the same amount paid by new and dual tech players but who have received only 4.4 MHz start-up spectrum. For instance, in 2002, Bharti and Vodafone were allotted start-up spectrum of 6.2 MHz while in February 2002, Bharti, Aircel, Spice, BPL were allotted 6.2 MHz when the policy framework related to enhancement in spectrum was not in place, argues AUSPI which says that the policy was specified only in March 2006.

Even on the subscriber linked criteria, AUSPI says that it favours incumbents since it effectively makes the task three times more difficult for a new player entering the field now.

AUSPI asks if the incumbents are suggesting auction of spectrum for spectrum up to 6.2 MHz, they should also give up additional spectrum held beyond 6.2 MHz and then claim it through an auction process.

Taking incumbents head-on who recently claimed that the government can earn Rs 10,000 crore by auctioning spectrum beyond 4.4 MHz up to 6.2 MHz, AUSPI says that incumbents collectively held 70 MHz additional spectrum, which command a market price of Rs 20,000 crore.