5.4.1 Approach I: Freeze the allocations at existing levels of spectrum 

provided except those where license conditions warrant further allocation but 

limit the maximum only upto the levels committed in the license. The present 

level of allocation to CMSPs (1

st

, 2

nd

, 3

rd

 & 4

th 

) / UASLs (using GSM 

technology) range from 2 X 4.4. MHz to 2 X 10 MHz, while to BSOs / UASLs 

(using CDMA) range from 2 X 2.5 MHz to 2X 3.75 MHz. The commitment in 

license of CMSPs / UASLs (using GSM) is of 2 X 4.4 MHz (with possibility of 

allocation upto 2 X 6.2 MHz) while that of UASL (using CDMA) is 2 X 5 MHz 

(4.4 MHz). The spectrum remaining thereafter is to be distributed and priced 

in a manner so as to ensure efficient utilisation and sustained growth. This 

approach heavily relies on market dynamics and makes spectrum available in 

a timely manner to those who need the most. The level playing field aspect 

has been taken care of in this approach by meeting the license commitments 

in respect of all players. In this approach the spectrum allocation beyond the 

commitment in license conditions is proposed to be based on the new 

methodology, which will encourage efficient utilisation of this scarce resource. 

One of the objectives of current consultation process is to evolve this new 

methodology. The question arises whether for new operators also the same 

approach i.e. allocation upto license commitment as per existing procedure 

and beyond this as per new methodology is followed or new methodology is 

followed right from the beginning. In either situation depending upon the 

pricing mechanism for new methodology, the new operators could be in 

advantageous or disadvantageous situation. 

Impact of Approach I 

Table 5.1 demonstrates that applying Approach 1 will leave 2x16 MHz of 

spectrum in Metros and 2 X 21.8 MHz in Non Metros to be allocated in 900 & 

1800 MHz band and no spectrum in 800 MHz band. This spectrum allocation 

would be made in a technology neutral manner.  

5.4.2 Approach II: Another approach could be to retain the existing 

methodology for allocation and pricing upto 2x10 MHz allocation or 2 to 3 

years which ever is earlier and after that new methodologies would be 

applied. 

Impact of Approach II 

In Approach 2, 2 X 8.4 MHz in Metros and 2 X 16.4 MHz in Non Metros would 

be the balance spectrum to be allocated through a competitive mechanism for 

GSM while there would be shortfall of 2x20 MHz in metro and 2x10 MHz in 

non metro for CDMA based operation. Comments of stakeholders is invited 

on the approach suggested.  

5.5    Spectrum allocation issues for fourth cellular operators 

While allocating spectrum upto the limits of 2 X 10 MHz there are issues 

relating to bands in which these allocations be made.  

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