The modalities and eligibility conditions for allocation of 3G telecom licences are expected to be finalised by the Telecom Commission.
NEW DELHI: The modalities and eligibility conditions for allocation of 3G (third generation) telecom licences are expected to be finalised by the Telecom Commission, the policy-making body for the telecom sector, in a week.
After that, the recommendations would be sent to communications minister A Raja for approval.
A top official in the Department of Telecommunications (DoT) told DNA Money that the auction process for allocating 3G mobile licences is likely around April-May.
It is believed that the recommendations of the Telecom Regulatory Authority of India (Trai) may be followed by the DoT for 3G licence auction.
Earlier this week, TRAI chairman Nripendra Misra wrote two strongly-worded letters to DoT secretary Siddhartha Behura, who’s also the Telecom Commission chairperson, pointing out that the spectrum allocation norms of the government were not in sync with the regulator’s recommendations on the subject.
Last year, TRAI had recommended the auction route for 3G licences, with a total base price of around Rs 1,050 crore at a national level. While for Mumbai, Delhi and A circle cities/towns, the base price was set at Rs 80 crore each, for Chennai, Kolkata and B circle cities/towns it was Rs 40 crore each. For C circle cities and towns, the base price was Rs 15 crore each.
Then, in November 2007, DoT announced that auction route would be followed for allocating 3G licences, but details and the timing of the process are not known yet.
3G refers to the next generation of mobile networks that will combine wireless mobile technology with high data rate transmission capabilities. 3G-enabled mobile services would offer high-resolution video and multi-media services in addition to voice, fax and conventional data services.
Raja had also said that 3G auction would welcome all, including those who do not offer telecom services currently and even foreign players. However, the DoT statement on 3G did not mention the eligibility conditions.
DoT sources said that initially around three operators in every service area are likely to get spectrum of around 10 MHz each through the auction route.
Industry players argued that if each operator was to get 5 mega hertz of spectrum, then around six players could be accommodated for offering 3G services. Around 30 mega hertz of 3G spectrum is available with the DoT, officials said.
Although the draft guidelines for 3G did not talk about the state-owned telcos, sources pointed out that one slot in 3G is likely to be reserved for a PSU telco.
According to DoT’s draft guidelines, the 3G licences would be granted through a controlled, simultaneous ascending e-auction by a specialised agency to ensure transparency.
There will be a one-time spectrum charge, and also an annual revenue-share of 0.5% of an operator’s adjusted gross revenue with the government.
After three years of spectrum allocation, the annual revenue-share fee will be increased to 1% of AGR. There would be stiff rollout conditions and penalties would be imposed for violations.
Also, 3G service providers would not be allowed any merger for five years. And, trading/reselling of spectrum would not be permitted.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}