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Thursday, Jun 11, 2009
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Business Daily from THE HINDU group of publications Thursday, Jun 11, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Telecommunications Info-Tech - Outlook Ministry may dump spectrum panel’s proposal on 2G auction Ministry in favour of subscriber-linked allocation Views auction as illegal Existing players to pay one-time fee for spectrum beyond 6.2 Mhz New players to get 6.2 Mhz start-up spectrum Thomas K. Thomas New Delhi, June 10 The Communications Ministry is likely to reject the recommendations made by the Spectrum Committee to auction spectrum for GSM-based cellular services and favour maintaining status quo on the existing subscriber-based allocation criteria. The Ministry is also not for capping start-up spectrum for new players at 4.4 Mhz, as proposed by the panel set up by the Department of Telecommunications (DoT). The panel, headed by the Additional Secretary, Mr Subodh Kumar, had suggested sweeping changes in the spectrum allocation policy including scrapping the existing subscriber base criteria. Highly placed officials in the Ministry of Communications told Business Line, “While we are in favour of auctioning 3G and WiMax spectrum as soon as possible, radio frequency for 2G mobile service cannot be auctioned as it is illegal. It is unfair to ask new players to take part in an auction when some of the existing players have got spectrum based on the subscriber criteria,” the official said. Pay for additionHowever, the Ministry is likely to price additional spectrum beyond 6.2 Mhz derived from the fee paid by operators during the fourth cellular bidding process. “We are considering a formula whereby operators with more than 6.2 Mhz will have to pay a one-time fee derived from the amount paid by the fourth cellular operator for the 4.4 Mhz,” the official said. If this formula is accepted then existing players such as Bharti Airtel and Vodafone will have to pay at least Rs 375 crore for each unit of spectrum beyond 6.2 Mhz. The Ministry will take a final view on these proposals after consulting the telecom regulator. The spectrum panel had suggested freezing all allocation of spectrum at current levels. It had suggested that spectrum should be auctioned and existing players should pay a one-time fee based on the amount collected during the auction for third generation mobile services. DoT panel mulls new 2G spectrum pricing formula DoT asked to clarify on 2G spectrum allocation DoT told to review 2G spectrum allocation policy Market forces should have determined price of 2G licences: TRAI More Stories on : Telecommunications | Outlook
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