TRAI favours the auctioning of 3G spectrum

NEW DELHI: Telecom regulator TRAI on Monday favoured auctioning spectrum for third generation (3G) mobile services to firms which already provide second generation (2G) services, a development that could be a setback to new players who wish to offer only the advanced telephony system.
    
The auction of 3G spectrum should be restricted to existing operators who are already providing 2G services, Telecom Regulatory Authority of India chairman Nripendra Misra said at a FICCI seminar here.
    
The regulator also said entry fees for new mobile licensees in all the circles should be raised as there is good growth potential in the telecom sector.
    
He said it would not be financially viable for new entrants to offer these services as compared to operators who have laid out their infrastructure all across the country.
    
The 3G services support faster downloads and more data transmission, enabling operators to provide high-end services and broadband.
    
Misra said to maintain a level playing field among the 2G operators, TRAI had not recommended auction of 2G spectrum.
    
Misra said he was hopeful that the government would soon accept TRAI's recommendations on auctioning of spectrum.
   
TRAI in its recommendations on 3G services last year had favoured auctioning of spectrum. It had proposed a base price of Rs 1,400 crore for a national 3G license.