3G: Come one, come all
The Department of Telecommunications (DoT) today said both Indian and foreign companies could bid for third-generation (3G) spectrum even if they did not have licences to provide telecom services. They could be issued unified access service licences (UASL) once they are successful in bidding, DoT said in its draft guidelines on auction and allotment of spectrum for 3G services.
DoT’s draft guidelines have been issued almost two years after the Telecom Regulatory Authority of India (TRAI) submitted its recommendations on 3G services. Significantly, TRAI and DoT have differing views on the 3G policy. While TRAI wants only the companies with licences to participate in the bidding process, DoT wants even those which do not have licences to bid.
If the draft guidelines are finalised, both existing and new players will be allowed to participate in the bidding. DoT officials think this would encourage competition, and would help in realizing optimum revenue from auction of spectrum. The guidelines also recommend 3G licences be given for 20 years, in line with the existing telecom licences. This will help operators raise funds for the project.
Auction will be for five blocks of spectrum of 2x5 MHz each in each telecom circle in the 2.1 GHz band. One bidder will not be allowed to bid for more than one block of spectrum. Details on the eligibility of bidders are yet to be finalised.
The current foreign investment guidelines put a ceiling of 74 per cent on foreign equity in a telecom service provider. Same guidelines would be followed in 3G services, said a DoT official. Therefore, there will be no specific mention of foreign players in the final guidelines, said an official.
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