The Hindu Business Line : ‘Don’t keep changing spectrum allocation norms’

Move comes in the wake of indications given by DoT that spectrum would be allocated based on the date of payment of the entry fee and not as per the date of application.

Our Bureau

New Delhi, Dec. 28 Aditya Birla promoted Idea Cellular has cautioned the Government against changing the priority for allocating spectrum to various operators waiting in line for new licences.

In a note to the Department of Telecom, the cellular company said: “Please note that any manipulation of initial spectrum allocation priority, achieved through the device of manipulation of dates of payment demands, would constitute an assault on Government policy.”

This comes in the wake of indications given by DoT that spectrum would be allocated based on the date of payment of the entry fee and not as per the date of application.

Idea Cellular had applied for 9 new licences in 2006 and will be among the first to get letters of intent (LIs) if DoT follows the date of application. However, if it is decided that the date of paying the entry fee would be considered, then Idea Cellular would not be in the reckoning since the Government has not yet sought money from it. Therefore Idea has offered to pay Rs 684.59 crore as the entry fee and another Rs 300 crore as bank guarantees for the 9 circles.

The company had earlier written to DoT asking for immediate issue of pending licences. “The unified access licence guidelines required DoT to issue letters of intent 18 months ago. We have blocked financial resources since, but have been prevented from effecting payment solely because DoT has not issued the LI as per specified timelines,” the Idea letter said.

Spice Telecom had also earlier shot off a letter to DoT on similar lines. More than 40 other companies are waiting in queue to get a telecom licence. The key problem is that DoT has sight of about 25 Mhz spectrum at present which is enough to accommodate 5-6 operators. Therefore applicants are falling over each other in a bid to get the LI first, which will put them among the few to get the radio waves based on first come first served policy.

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