DoT allocates CDMA spectrum to Sistema

Sistema’s strategy to beat the huge demand for GSM spectrum by seeking bandwidth to deploy CDMA technology has worked while the GSMA operators have to wait for the clearance of spectrum by defence forces.

The Department of Telecom has decided to allocate radio waves to the company in 3 circles ahead of other new licencees.

Though Sistema was the last, among the new companies, to get a licence, it will be the first to get spectrum because it had applied for CDMA spectrum. All other companies, including Unitech and Videocon, are waiting for GSM spectrum to be released by the defence forces.

Sistema had earlier struck a joint venture partnership with Rajiv Mehrotra-promoted Shyam Telelink. The company has been given the clearance for North East, Jammu &Kashmir and Assam. Sources said that services may be launched by the end of the year even as spectrum in other circles is awaited. With as many as 5 new operators claiming spectrum for GSM technology, Sistema would have had to wait at least a year if it had chosen to offer GSM-based mobile services.

Sistema was among the last few to get the licence and since the Government is allocating spectrum on ‘first-come, first-served’ basis, it would have found itself at the back of the line for GSM spectrum. Sistema has already announced $5 billion investment in setting up pan Indian mobile network. Both Shyam and Sistema have experience with rolling out CDMA-based network. While Shyam has basic telephone services in Rajasthan using the CDMA technology, Sistema is using the technology in Eastern European countries and in Russia.

Sistema’s most valuable asset, Mobile TeleSystems (MTS), also has CDMA-based mobile operations.

Source : Sify