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The number of 3G players in the country could go up to 10 from existing seven if intra-circle roaming arrangements are allowed by the courts. At least four new 2G operators could plunge into the 3G services market even though they don't have spectrum.
While the Department of Telecom has taken a view that the roaming arrangements are illegal, the new players are keenly watching the proceedings at the Telecom Dispute Settlement Appellate Tribunal where incumbent operators have challenged the DoT order.
“We had identified a potential partner and were all set to sign the roaming agreement when the DoT order came. Now we are waiting for court ruling on the issue,” said a Mumbai based new 2G player.
Though neither of these 2G operators have spectrum for 3G services, they are hoping to move up the value chain through agreements with operators who won airwaves in the auction held in 2010.
“There is no separate licence for 3G. The universal access licence, which we have, allow us to offer all types of services and so it is only a matter of entering into a commercial arrangement with an operator who has 3G spectrum,” said one of the incumbent operator.
The tie-ups
But the challenge would be to find a 3G operator who would allow the 2G players to roam on its network. Barring Reliance Communication and Bharat Sanchar Nigam Ltd, the other five operators with 3G spectrum have already entered into roaming arrangement.
Airtel, Vodafone and Idea had entered into an agreement which enabled them to sell 3G connections even in areas where they didn't have spectrum.
For example, Idea Cellular, which does not have 3G spectrum in Delhi, is offering services through an arrangement with Airtel. Similarly, Airtel is using Idea Cellular's spectrum in Kolkata.
Tata Teleservices and Aircel also got into a similar deal. Though DoT has taken a view that this arrangement was illegal, the operators have challenged this in TDSAT.
If the court decides in favour of the operators then there could be more competition in this space with the entry of new players.
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