DoT meeting on Oct 22 over 2G-3G revenue split issue
(19 oct '08 ; 02.00 . pm)

Department of Telecom will hold a meeting on October 22 to mull over the methodologies for splitting of 2G and 3G revenue.

Telecom Minister A Raja told media, "We will find a solution to this."

Splitting of 2G-3G revenue has been opposed by Finance Ministry, TRAI and CDMA players. While CDMA players say segregation of revenue is not possible, TRAI and MoF feel this would cause revenue suppression by the operators causing losses to the exchequer.

Sources said DoT is banking basically on two options -- proportionate traffic model, under which the revenue is segregated on the basis of traffic generated in 2G and 3G segments, and CDR (Call Data Records) billing base model, where all voice calls, SMSs, MMSs and data usage can be identified as 3G or 2G by flagging of CDRs.

However, GSM operators' body COAI has been emphasising that separation of revenue is a practical and feasible idea.

DoT has already has set up a panel to look into the possibility of 2G-3G revenue split in view of the Finance Ministry's opposition to it. The sub-committee formed by the department is expected to submit its report by the end of this month, the sources said.

Industry experts also feel that DoT may find it difficult to work through segregation of revenue between 2G and 3G due to complex splitting methods.

Pointing to the recent modifications made by DoT, which said the licencee shall pay an annual spectrum charge of 1 per cent on the incremental revenue due to 3G services after a period of one year, TRAI said it is very much impossible to calculate revenues arising out of 2G-3G services in case a service provider offers both services.


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