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INDIA BUSINESS WORLD - 1st August 31st 2008
DELHI HIGH COURT REJECTS GSM COS' PETITION ON DUAL TECHNOLOGY
THE Delhi High Court has dismissed a petition by GSM players that challenged the government's decision to allow telcos to offer mobile services under dual technology (both GSM and CDMA technology platforms). GSM operators had told the court that the DoT was 'attempting to pass off a second and new license to CDMA operators in the garb of dual technology'.
The Delhi HC's move is set to benefit existing CDMA players, all of which have applied for GSM radio frequencies under the dual technology licence. The DoT has already allotted start-up GSM spectrum to Reliance Communications, the Tatas and Shyam-Sistema for launching services on this platform.
While dismissing the petition, the Delhi HC also imposed 'a cost' of Rs 50,000 each on six petitioners, including Bharti Airtel, Vodafone-Essar and Idea Cellular, and their industry association Cellular Operators Association of India (COAI). The telcos have been asked to deposit this sum with the court’s legal service authority.
It is not known if GSM operators will appeal against the Delhi HC's decision. The issue of dual technology licences is also being heard by telecom tribunal TDSAT. Industry observers say that the Delhi HC ruling could have an impact on the TDSAT's final judgment on the issue. COAI, the GSM operators' association refused to comment on the Delhi HC ruling. The Association of Unified Service providers of India (AUSPI), the body representing CDMA players welcomed the ruling: "This will allow our members who will soon launch GSM services to bring competition into the market. The consumers are set to benefit," AUSPI's secretary general S C Khanna said.
GSM operators had approached the Delhi HC in December 2007 following the telecom tribunal’s decision not to grant a stay on allocation of spectrum and licenses to new entrants including dual technology license holders. The COAI had said that the allotment of crossover spectrum to rival CDMA service providers by the government was in violation of Unified Access Service License regime. It had also sought that the Delhi HC quash DoT's policy announcements on October 18 and 19, 2007 which permitted the use of dual technology. Additionally, it had also asked the Delhi HC to turn down the DoT's decision to endorse sector regulator Trai's recommendations for adoption of an enhanced subscriber-linked criteria for allocation of additional radio frequencies. The COAI had also questioned the events of 18/19 October 2007 (when the government approved the dual technology license) and had alleged that an "in-principle approval" was given to RCOM for launching GSM services even before the new policy on dual technology was publicly announced. However, CDMA players such as RCOM in their submissions to the Delhi HC had said that that GSM players after having got more than their share of required radio frequencies and were now trying to stop others from getting the start-up spectrum for operations in the same segment.
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