The Hindu Business Line : Spectrum: DoT favours ‘first come-first served’

If the Defence , which still have thier communication equipment in the 2G band, were to make the 2G spectrum available only by 2008, DoT’s plans could go awry.

Our Bureau

New Delhi, Oct. 14 Idea Cellular, Himachal Futuristics Comunications Ltd and ByCell could be among the first to get spectrum, with the Department of Telecom deciding to continue with the existing ‘first come-first served’ basis of allocating radio frequency.

The others in the fray who had applied for a telecom licence in the last week of September including Unitech, Hinduja, Indiabulls, AT&T and Tulip IT may have to wait a while for making a foray into the telecom sector.

While DoT had earlier said that it was examining the possibility of auctioning spectrum, it has now suggested to the Ministry of Communication that the best way forward would be to continue with the existing allocation policy.

Final decision

The Communications Minister, Mr A. Raja, is expected to take the final decision in the next two or three days. If the Government decides to continue with the ‘first come-first served’ policy, the recent rush for licence where more than 30 companies put in 500 applications could become a damp squib as most of them are towards the end of the queue.

Existing operators had strongly lobbied against allocating spectrum on an auction basis. They had also said that spectrum should be given to operators who had applied before December 2006 before requests from new applicants are considered.

However, if DoT also simultaneously increases the number of subscribers required to be eligible for additional spectrum, then existing operators such as Airtel and Vodafone, who have also applied for more radio frequency, may not get it since they will have to get more subscribers.

In this case, some of the new applicants may be able to squeeze in as pan Indian operators will be out of the fray for spectrum.

Mr Raja had earlier said that he was hoping to get 25 Mhz spectrum from the Defence forces by November.

This would be enough only for about 5 operators. While 3 of this slot may be given to existing players, 2 new players per circle may be accommodated on a ‘first come-first served’ basis. However, all this depends on whether Defence forces agree to give up radio frequency.

According to Government sources, the Defence may release 3G spectrum ahead of 2G since they still have their communication equipment in the 2G band.

They said 2G spectrum could be made available only by 2008. If that happens, DoT’s plans could go awry as it is yet to finalise the 3G policy.