He also says the reason CDMA as a technology hasn't done well is due to the lack of large enough ecosystem available worldwide. He disagrees with telecom minister, Kapil Sibal and says, "We are coming to judgment very fast when we say that CDMA is an outdated technology."
Also read: EGoM decides to cut base reserve price by 30% in 4 circles
Below is the edited transcript of Sud's interview to CNBC-TV18.
Q: We saw absolutely no bidders at all in the first round of the auction that did take place. After that Kapil Sibal in an interview to CNBC-TV18 said CDMA is an outdated technology. Now everything to do with the 800 Mhz band is going to be referred to TRAI, what did you make of today's Empowered Group of Ministers (EGoM) decision?
A: We are coming to judgment very fast when we say that CDMA is an outdated technology. CDMA as a technology has not done as well as GSM because of the lack of large enough eco-system available worldwide, whether it is infrastructure, whether it is handsets and so on. Due to that handicap CDMA was not able to do as well. CDMA is a great technology when it comes to data services. Today all the data cards that are being used in the country are Reliance, Tata or MTNL data cards, which all run on CDMA technology. Therefore, to say that it is outdated, would be very premature.
Q: However, the fact is the (EGoM) has decided what will be done with the 800 MHz band and that's going to be referred back to Telecom Regulatory Authority of India (TRAI). What are your expectations from TRAI? Also the GSM players wanted a piece of the action from the 800 MHz band, but the EGoM decided against that?
A: If the EGoM has decided against that, it was a wise thing to do, because we must remember that we have three companies, which have CDMA licenses. They have more than 100 million customers working on the spectrum and they have a whole lot of data services which continue to grow. I really do not know what has been justification for removing some of the spectrum from the CDMA and leaving it to GSM. However, if that it the decision that the EGoM has taken, I think it is very wise decision.
Q: Do you think the government is not doing enough then for the CDMA technology, despite the comments that's come in from the telecom minister. Do you think the government needs to do more at this point?
A: The government really knows what the real situation of CDMA is. The value that it has been trying to attach to CDMA spectrum, at 1.3 times the value of the 1800 MHz of spectrum, was quite out of line. Infact, if you look at it from a very practical point of view, the reserve price attributable to the CDMA spectrum should have infact been below the reserve price for 1800 MHz spectrum. The government is aware of that and therefore it is now struggling with what really should be a realistic reserve price. So that when they go around and auction the next time, they don't have the same situation as they had this time. Therefore it is in dilemma, probably because of that they are not able to take a decision.
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