CDMA vs GSM
The spectrum spectre

The CDMA Development Group's issue is with how the government, contradicting the TRAI's guidance, has skewed the distribution of spectrums in favour of GSM operators. With third generation (3G) technology on its way, it is imperative that a technology- and service-neutral basis be applied for spectrum distribution.

By B V Raman

The CDMA Development Group (CDG) notes that the approach of assigning unequal spectrums to Code Division Multiple Access (CDMA) and Groupe Spécial Mobile (Global System for Mobile Communications, or GSM) service providers, in the proportion of 1:2, is unique to India. It is in contradiction to the guidance of the Telephone Regulatory Authority of India (TRAI) and also not aligned with international best practice. This policy is not technology-neutral and, in fact, penalises the efficiency of CDMA rather than rewarding it, when it comes to utilising such a scarce resource as spectrum.

After detailed deliberation among all stakeholders, in its spectrum recommendation on May 13, 2005, the TRAI advocated that all additional spectrum assignments to CDMA and GSM service providers must be equal. But the Department of Telecommunications (DoT) Order dated March 29, 2006, has continued this unequal assignment and maintained the subscriber-based approach of assigning spectrums to CDMA and GSM service providers.

The CDG has serious reservations about this, and would also like to note that, pursuant to the DoT Order, CDMA service providers will not have enough capacity and will, thus, be precluded from deploying data and broadband services in the foreseeable future, even though the provision of such services is allowed under the current license (User Agent SubLayer, or UASL). The DoT Order will not only deprive Indian consumers' access to Internet and value-added services, but it also goes against the overall best economic interest of the country.

The CDG notes that every one per cent increase in Internet penetration has a positive impact on the Gross Domestic Product, and that this impact is two times greater than a one per cent increase in voice-only services (derived from the International Telecommunication Union's telecommunications indicator database). The CDG also notes that the basis for this assignment criterion will become null and void as soon as GSM operators migrate to Wideband Code Division Multiple Access (W-CDMA), a type of third generation (3G) cellular network, to enable enhanced services.

The CDG has in the past commended other government policies, such as the UASL initiative, which has played an important role in increasing voice teledensity. Similar forward-looking policies are needed to significantly grow information (Internet) teledensity, currently below one per cent, hampered by the current spectrum assignment process, which severely underutilises the capabilities of the existing equipment.

This equipment has the potential to offer advanced data services, along with voice. Hence, the current approach will discourage operators from offering differentiated services. The CDG, therefore, urges the government to de-link subscriber numbers as a criterion for releasing spectrum, and provide spectrums to both CDMA and GSM service providers based on equal criteria in order to enable them to deploy both voice and data services simultaneously in line with international best practice.

The CDG believes that in paragraph 2.3 of the 3G consultation, the TRAI has identified the principles to be considered in the identification of 3G spectrums:

• Facilitate international roaming
• Facilitate interoperability among systems
• Leverage economies of scale by identifying globally harmonised 3G spectrum
• Consider availability of spectrum in India and coordinate network construction options with vendors
• Ensure potential for future technological evolution

There is no single band that is preferred globally for International Mobile Telecommunications-2000 (IMT-2000), which is the global standard for 3G wireless communications, as it is up to individual administrations to determine which band is the best in line with national needs and availability of spectrums. Paragraph 2.1 of the current consultation says that the International Telecommuni-cation Union (ITU) has identified multiple bands for IMT-2000, including, among others, the 800 MHz, 1800 MHz, 1900 MHz, 2100 MHz and 2500 MHz bands.

After the spectrum decision is made by the administration, operators and market forces should determine which technology to deploy in the available spectrum. In addition, licence conditions, or spectrum policies that favour specific technologies, will hinder the growth of the mobile sector, which India sees as a major component of its plans to improve access to telecommunications services.

Given the ITU's identification of spectrums that include band pairings of both the 1900 MHz/2100 MHz and the 1850-1990 MHz (PCS 1900) bands, the CDG believes that India would be well-served by accommodating operators requesting allocations for both duplex patterns. Already, there are at least 65 CDMA-2000 operators using the PCS 1900 duplex pattern in 21 countries. Their subscribers number approximately 100 million, or about one-third of the CDMA subscribers globally. Therefore, the implementation of a mixed-band plan is the most advantageous route for India's operators and subscribers.

The US PCS (1900 MHz) and the 2.1 GHz bands coexist in Commercially Operational Wireless Services available under 3G licences in the Philippines. The table on this page shows the UL and DL frequencies. Of the three CDMA players, MTI offers Mobile 3G services while Bayantel and Digitel offer Fixed Line Access with 3G. Smart and Globe offer W-CDMA-based Universal Mobile Tele- communications System (UMTS) services in the same area.

This substantiates the CDG's submission that in India, the CDMA players must be allotted spectrum in the 1900 MHz band for 3G services. This will be in line with globally harmonised bands for CDMA to ensure economies of scale, and should put to rest the GSM lobby's arguments regarding interference.

In the event that spectrum in the 1900 MHz band is not available, the CDMA Operators should be allowed in-band migration in the 800 MHz band, and additional carriers released for such migration. This is the only way that the benefits of equipment availability and of economies of scale would become available to CDMA operators in India.

If the available spectrum falls short of the demand, there are multiple-spectrum allocation methods, with auctions and beauty contests the most often employed. But the CDG believes that the most important factor in the allocation criteria is that spectrums be granted on a technology- and service-neutral basis, which will ensure that all bidders have equal access to available spectrums.

(The author is India Country Head, CDMA Development Group)