TRAI recos more positive for CDMA operators: Macquarie Sec

Q: Any concerns on the price that has been set, particularly for the PAN India license?

A: One good thing is that circle wise bidding and circle wise allocation of spectrum is allowed, contrary to some perceptions earlier that it will be a nationwide spectrum allocation. So that is good.

What one can essentially do now is bid for circles where they feel there is an uptake of 3G services. So essentially one will bid only for commercially viable circles. So one may end-up not bidding for a PAN India 3G spectrum at all.

Q: Do you see these recommendations at all leaning towards the CDMA space on a timeline basis if anything else?

A: Not in terms of timeline. But possibly the fact that CDMA operators can choose between 450, 800 and 2100 megahertz bands, and can also have a much better control on cost of equipment and planning in terms of handsets and compatibility will basically be favourable for them.

So to that extent, it’s mildly more positive for existing CDMA operators than GSM operators. This is not to say that this is negative for the GSM operators. But given that there was a bit of negative overhang for CDMA operators with regard to the 3G migrations plans, that overhang really goes away with these recommendations.