DoT has rejected Anil Ambani-promoted Reliance Communication’s plea for additional 2G airwaves for its GSM based mobile services, and has also put on hold similar pending applications from other new entrants.

According to telecom ministry’s internal note it is not appropriate to process additional spectrum requests from any operator, including RCOM, since sector regulator TRAI was looking into the feasibility of pricing additional airwaves.

RCOM, which had been awarded 4.4 MHz of start-up GSM radio frequencies in most circles, had demanded for additional 1.8 units of spectrum on the grounds that this was the minimum amount committed to the company when it obtained approvals to launch services on this technology platform in 2008. Additional airwaves are given to companies after their subscriber base grows to touch certain pre-defined targets – these figures differ from state to state.

RCOM in its application for additional airwaves had also pointed out that TRAI’s latest recommendations say additional airwaves must first be made available to new entrants who have already been awarded start-up spectrum to help them perform their operations efficiently.

This implies that companies which hold 4.4 MHz of start-up spectrum will be given first priority to enhance this to 6.2 MHz for no additional cost. Next in line will be incumbents that currently hold less than 8 MHz of airwaves. Their holding will be enhanced to the 8 MHz cap provided they meet rollout obligations and pay the one time fee.

TRAI had added last in queue will be new entrants like Tata DoCoMo and Uninor, which are yet to receive start-up airwaves in many circles.

It is also learnt that the telecom ministry had decided to put on hold additional airwave allocations to all existing companies in a bid to avoid any legal complications.

This is because, Tata Teleservices told the telecom department that any move to award 2G spectrum according to a formula prescribed by the regulator would amount to serious discrimination against the company, while adding that the company had first rights to these scarce resources.

The telco, in which Japan’s DoCoMo has a 26% stake, also stated that any move to award additional airwaves first to operators that already had start-up spectrum of 4.4 MHz would favour a single company and would be discriminatory to others.

Tata Tele has been agitating with the government after the telecom department’s legal wing recently endorsed a proposal by TRAI which  stated that additional airwaves should first be made available to new entrants who have already been awarded start-up spectrum to help them perform their operations efficiently.

While the implementation of this proposal will benefit RCOM in all circles, it will result in operators such as Tata DoCoMo and Uninor which are yet to receive start-up airwaves in many circles being placed last in the priority queue for airwaves, and these companies will not stand any chance to get startup 2G spectrum in circles like Delhi.