GSM operators have alleged that they would face a steeper financial entry barrier compared to CDMA firms in 3G Policy. The 3G Policy has been center of criticism from many sides. Earlier, several potential 3G entrants had indicated that steep financial and regulatory barriers vis-à-vis existing operators may prevent them from participating in the auction.

 

T V Ramachandran, DG, Cellular Operators’ Association of India (COAI) in his statement said that the policy is partial to CDMA operators as they are entitled to spectrum in both 800 MHz and 450 MHz bands in addition to being eligible to bid in the 2.1 GHz band. Factually, the 3G auctions have been designed in various financial entry points for all three categories of bidders which favor CDMA.

 

However, according to TRAI recommendations if a CDMA operator opted for one carrier of 1.25 MHz in the 800 MHz band, then it should receive proportionately less (3.7 MHz) spectrum in the 2.1 GHz band. Also, it assured both GSM and CDMA operators must get an equal amount or 5 MHz of 3G spectrum. Nonetheless, the startup price for CDMA operators is a fraction of the others.