The Hindu Business Line : New applicants against spectrum auction

New Delhi, Nov. 16 In a twist to the ongoing battle for radio frequencies among mobile operators, Shyam Telecom, Himachal Futuristic Communications Ltd and a few other new applicants for telecom licences, which would benefit from the first-come-first-served spectrum allocation policy, have sent notices to the Communication Ministry against conducting an auction for 2G mobile services.

The move puts the Government in a fix as existing GSM operators have already gone to court opposing the decision to issue licences on a first-come-first-served basis to a few operators.

Legal action

A Cabinet ranked Minister told Business Line: “At least 4 companies who would probably be the first to get spectrum under the first-come-first-served policy have sent notices to the Communication Ministry saying that they would go to court if it goes for an auction.

“They have pointed out that auction is legally untenable as such a decision would be against the recommendations of the TRAI (Telecom Regulatory Authority of India) and the DoT (Department of Telecom).”

First come, first served

Confirming the move, Mr Mahendra Nahata, HFCL Chairman, said, “We have told the Government that they cannot discriminate against us and have to issue a letter of intent at the earliest. The Government has been giving licences till now on a first-come-first-served basis so why talk about auction when it is our turn to get the licence.”

Dual tech

On the controversial issue of allowing dual technology, the Government source said that the Communications Ministry has told the Prime Minister that it had only accepted TRAI’s recommendations. The Cellular Operators Association of India, however, has alleged that the Ministry had not followed the due process since it was a change in policy.

Meanwhile, the panel set up to review the subscriber-based spectrum allocation policy has invited all the operators to present their views on how available radio frequency should be allocated. The DoT has also called all the promoters of telecom companies in a bid to arrive at a consensus formula.