DoT may dump cell licence queue
KOLKATA/NEW
The current policy allocates 2G spectrum to companies on a
first-come-first-serve-basis (where Vodafone, Idea and Spice are ranked above
all the new applicants). At present, when a licence
is allocated for a particular circle, it comes bundled with 2G spectrum.
However, following the slew of applications over the
last couple of weeks, the DoT had constituted an
internal committee to rework the existing policy norms. DoT
sources told ET that this internal committee is ‘most likely’ to do away with
the first-come-first-serve clause, and also delink
grant of licence from spectrum allocation.
Besides, the DoT committee is likely to recommend
that new norms be extended to the pending applications of existing operators
(Vodafone, RCOM, Idea, Spice) and not just the new
players. Put simply, if implemented, this would mean that the pending
applications of the players to expand to new circles will be treated at par
with the nearly 375-odd new UASL applications landing over the last couple of
weeks. Confirming it, a government source close to the development told ET: “As
per new norms, which will be unveiled soon, the license is likely to be delinked from spectrum allocation.
The DoT committee is likely to recommend that this be
extended to the pending applications of existing operators also and not just
the new players. This issue will also be discussed during the meet between
telecom minister A Raja and representatives from the industry in
A DoT official said a possible solution being
considered was to issue a pan-India UAS licence to
new applicants on payment of Rs 1,500 crore entry fee, and subsequently
ask all players to separately bid for spectrum through the auctioning route.
“Existing players who want to expand their operations to new circles may then
be asked to bid along with the new entrants. But this is only an option and
there is no final decision on this yet,” the DoT
source said.
It must also be noted that players such as Vodafone, Idea Cellular and Spice
have jointly asked the government (DoT) to treat
their pending applications for mobile licenses ‘on a different footing’ by
considering them on a ‘top priority’ basis, when compared to other applicants.
These players, through their industry association COAI, have told the DoT that the government in the past had already
discriminated against them when it announced the UASL policy in 2003.
The new policy allowed FSPs (fixed service providers
such as Reliance and Tatas) to migrate to full
mobility and also gave them additional advantages as they were placed first in
the queue (for spectrum) and had no waiting period, pointed out Vodafone, Idea
and Spice in their communication to the DoT.
Another senior government official in the communications ministry said “several
high-powered meetings were scheduled this week at the DoT
as the government was looking at coming up with a definite set of new
guidelines by October 10 to lend clarity to future spectrum allocation norms”.
With regard to TRAI’s recommendation that companies
be allowed to offer both CDMA and GSM services under the same license, the
government official added: “Any DoT response to a
pending application for extra spectrum by an existing GSM licensee or request
by an operator to offer access service through a combination of technologies
under the same licence will need to be taken keeping
the total spectrum availability in mind.”