Reliance Communications opposes 3G entry fee

NEW DELHI: While supporting the earlier TRAI recommendations on no entry fee for Third Generation Mobile services spectrum, Reliance Communications has said if at all any criteria is to be applied, economic and social benefits of 3G should be the benchmark.

"The Authority in its recommendations on May 13, 2005, had very rightly recommended that there should be no one-time spectrum charges for allocation of IMT 2000 spectrum to the existing service providers.

"The recommendation was based on the consideration that 3G spectrum is viewed as an extension of 2G spectrum and service neutral approach as recommended by TRAI on unified licensing.  This recommendation was based on sound logic and should be reiterated," RCL said in its presentation to TRAI.

Ratan Tata, Tata Group head, had earlier recommended that an entry fee of Rs 1,500 crore should be put on 3G spectrum.

GSM-based cellular opoerators have all along been opposing any entry fee on 3G spectrum, fearing escalation of cost.

It said that if any criteria is to be selected, then the spectrum pricing should be based on the consideration of economic and social benefits of the 3G services rather than revenue to the Government to fund requirement of reframing or demand-supply situation.

The key objective should be not to earn revenue through sale of spectrum but to achieve growth in wireless services, it said.