Mobile operators may soon have to meet rollout obligations based on the technology they deploy in a specific spectrum band. Telecom regulator TRAI has written to the Government to this effect.
The move will make it tougher for mobile companies.
For example, if an operator offers 2G services on 1,800MHz and 3G on 900 MHz band, it will have to complete the rollout obligation for each band. Under the existing policy, operators are required to meet one set of targets within a circle irrespective of the amount of spectrum it holds or the type of technology it deploys.
“There is a different ecosystem developing in these bands and, in future, it is likely that the telecom service providers may opt to deploy different technologies in 900 MHz and 1,800 MHz bands,” TRAI said in its letter to the Department of Telecommunications (DoT).
“This will have a direct bearing on rollout obligations, too. Therefore treating them as the same band is neither appropriate nor warranted.”
If accepted, incumbent operators will have to meet rollout obligations all over again unless they decide to stick to offering 2G services in the two frequency bands. TRAI said that if the telecom operator decides to change technology after a few years, it should be told to complete fresh rollout targets within two years after it changes technology.
Meanwhile, the Telecom Commission is expected to meet on Tuesday to take a view on the crucial spectrum usage charge (SUC). The DoT has given six options to the Commission, including introducing a flat fee of 3 per cent for all telecom companies and 1 per cent for broadband players.
Incumbent operators such as Bharti Airtel and Vodafone are in favour of a flat fee, while Reliance Jio has opposed it. New mobile players have also thrown their weight behind the incumbent operators. Videocon Telecom on Monday said it favours uniform SUC, but only on spectrum procured through auction.
Arvind Bali, Director and CEO, Videocon Telecom, said: “In the earlier licence regime, spectrum was allocated administratively, where there was no payment by the operator for spectrum allocation, hence slab-based spectrum usage charges were logical. However, in the current regime, spectrum is allocated through auction, where the operator is paying the market value of the spectrum. Thus SUC to the extent to cover the administrative expenses should be payable.”
Bailout plan The Empowered Group of Ministers (EGoM) looking into the revival of two telecom PSUs — Bharat Sanchar Nigam Ltd and Mahanagar Telephone Nigam Ltd — will meet on Wednesday to finalise a bailout plan.
DoT had floated a proposal to give financial aid to the two companies to fund their one-time spectrum fee. The two face a payout of about Rs 10,000 crore following the decision of an EGoM to impose a fee on incumbent players with excess spectrum.
In addition, they have to bear a huge cost for re-farming 900 Mhz spectrum band as proposed by the EGoM.
There are other initiatives being considered, including VRS for the employees.
Some things are secret: DoT
DoT has told the telecom regulator it will not be possible to disclose the exact frequency band which can be allocated to local manufacturers that want to deploy indigenous technologies.
Since some of the spectrum is being used by defence forces, disclosures may lead to security concerns, it said.
Earlier, DoT had asked TRAI to give recommendations on the method of allocation, pricing and eligibility criteria for accessing this spectrum.
Small chunks of spectrum have been reserved in the 900 MHz and 1,800 MHz band to be exclusively used for developing indigenous telecom networks. This was done under the National Frequency Allocation Plan to encourage local manufacturers.
A private GSM network supports mobility requirements within a large campus.
It can also be deployed in rural areas to provide cost-effective services through low-powered scalable networks.