The Department of Telecommunications, which is in the process of framing fresh licensing norms for the telecom sector, is in favour of allowing dual technology by mobile phone operators.
Subscriber-based spectrum allocation, first-come licence policy to continue
NEW DELHI: The Department of Telecommunications (DoT), which is in the process of framing fresh licensing norms for the telecom sector, is in favour of allowing dual technology by mobile phone operators, it is learnt.
The DoT line of thinking is in sync with the recent recommendations issued by the Telecom Regulatory Authority of India (Trai) on the matter.
If allowed, the new norm is expected to benefit leading CDMA player Reliance Communications, which has ambitious plans of expanding its 8-circle GSM service to all across the country. In August, Trai had issued recommendations on new telecom licensing norms.
While DoT, through its series of internal meetings, has discussed several issues related to the new licensing conditions, the Telecom Commission chaired by the DoT secretary D S Mathur will meet shortly to firm up things.
Finally, communications minister A Raja’s nod will be required before the new policy can be finalised.
Although DoT is in favour of allowing dual technology, the final decision will depend on spectrum availability, according to sources. Among other issues, DoT is likely to continue with the subscriber-based spectrum allocation criteria and first-come-first-serve licence policy, rather than introducing an auction-based regime.
The telecom regulator, in its recommendation, had opposed any cap in the number of operators in a circle, and had increased the cross-holding limit from 10% to 20% in case of merger, thereby encouraging the sector to grow even further.
Also, it had favoured access providers using combination of technologies, though at a price. Besides, it had lowered the limit of market share of merged entity from 67% to 40%.
The regulator had even imposed a one-time fee for spectrum allocation beyond 10 mega hertz. In addition, looking at the current spectrum constraint, it had enhanced the present subscriber criteria norms for allocation of spectrum.
On cross-technology or dual technology, Trai said that an existing licensee may be permitted to use alternate technology to provide wireless access service, on payment of an upfront fee at least equal to the entry fee for an unified access service (UAS) licence in that service area.
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