Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL), may not have to participate in the auction process for getting 3G (third generation) spectrum
NEW DELHI: State-owned telecom companies, Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL), may not have to participate in the auction process for getting 3G (third generation) spectrum, it is learnt.
The state telcos are likely to have assured 3G slots. Other telecom service providers, however, will be selected for 3G services through a bid process.
Sources said that a request by BSNL for allocation of 3G spectrum ahead of other operators is under the consideration of the Department of Telecommunications (DoT).
They added that all successful service providers (in the auction process), including BSNL and MTNL, would have to pay the same spectrum charge.
It is believed that BSNL was recently given spectrum for `indoor demonstration’ of 3G services across several cities.
DoT is yet to formulate the detailed guidelines for offering 3G services in the country and conducting the auction process for the same.
The base price to be fixed for auction of 3G spectrum is one of the areas on which a decision has not been taken so far.
Last year, the telecom regulator, 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 citiestowns, 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.
Subsequently in November 2007, DoT announced that auction route would be followed for allocating 3G licences, but details and the timing of the process were not unveiled.
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.
DoT officials have said that 3G will not be limited to just the existing players and that foreign players can also participate.
According to DoT’s draft guidelines, 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, tradingreselling of spectrum would not be permitted.
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