Spectrum refers to a range of radio frequencies. The band width of a radio signal is the difference between the upper and lower frequencies of the signals. For example, in case of a voice signal having a minimum frequency of 200 hertz and a maximum frequency of 3000 HZ, the band width is 2800 HZ. But the amount of bandwidth needed for 3G services could as much as 15-20 MNZ.

Hence for 3G huge bandwidth is required. Wireless communications make use of the radio portion of electromagnetic spectrum and receive signals at various frequencies to enable communication. This radio spectrum only contains a limited number of frequencies. Signals can be sent on different frequencies at the sometime.

However, if frequencies are the same or too close, they can interfere with each other. As the number of frequencies is limited, they need to be allocated to different service providers. Therefore, spectrum is allocated for various communication purposes worldwide.

The availability of spectrum is also not free and currently spectrum change has two components. First, entry fee charged is inclusive of one- time spectrum charge and second annual spectrum charge is demanded according to the Adjusted Gross Revenue (AGR) of the telecom company. Currently, the ceiling for annual spectrum charge is 6% of AGR. The new recommendations of Telecom Regulatory Authority of India say that, ceiling for AGR will be reduced to 4% and there will be no one time spectrum charge for allocation of IMT-2000 spectrum to 3G for existing service providers. The regular or spectrum has explained that the allocation to the existing service providers should be viewed as extension of 2G spectrum allocations. However, the contrary view is that spectrum is a scarce resource and that additional allocation should be priced.

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TRAI was also asked by the government to work on spectrum- related issues. The TRAI has also said that the existing spectrum allocation cretin for both GSM and CDMA operators need to be reviewed so that additional spectrum allocations are made in technological neutral way.

It has been also recommended that CDMA operators be provided additional spectrum in 800 MHZ, 450-MHZ, 1800 MHZ and IMT- 2000 (International Mobile Telecommunications) band to meet short term and long term needs of these operators.

For GSM operators, additional spectrum in 900-MHZ, 1800 MHZ IMT-2000 band has been recommended. The fear of GSM operator is that the allocation of frequency in 1900 MHzS band to CDMA player would hit their 3G services.