Date:20/10/2007 URL: http://www.thehindu.com/2007/10/20/stories/2007102057201900.htm

Business

No cap on telecom players in a service area

Staff Reporter

TRAI’s major recommendations accepted

To levy spectrum enhancement charge
Telecom Engineering Centre set up

NEW DELHI: The Centre on Friday accepted the major recommendations of the Telecom Regularity Authority of India (TRAI) for improving tele-density that includes allowing unlimited number of telecom operators in a service area and permitting existing players to use both GSM and CDMA technologies to offer their services. For allocating spectrum, it has decided to adopt subscriber-link criterion.

It accepted the TRAI’s recommendation to enhance the subscriber-link criterion for allocation of frequency spectrum to licensees and has set up a committee on Telecom Engineering Centre (TEC) to further study the issue. To further enhance the penetration of telephone services, the Department of Telecom (DoT) has decided that the existing private Unified (Telecom) Access Services (UAS) licensees may be permitted to expand their existing networks by using alternative wireless tech- nologies.

The existing UAS licensees, who have already applied for the allocation of spectrum for the alternative technology, will also be considered for allocation from the date of payment of the prescribed fee.

However, BSNL and MTNL, being incumbent operators, will be permitted to use alternative technology and allocated spectrum for the alternative technology without paying the prescribed fee, the Government said.

The Government has also decided to levy ‘Spectrum Enhancement Charge’ to encourage the licensees to use all available methods for efficient spectrum utilisation.

In addition to annual spectrum charges based on revenue share, the “Spectrum Enhancement Charge” may be levied at the time of additional spectrum allotment to licensees.

RCom pays spectrum fee

PTI reports:

Within hours of the government’s nod to offer GSM-based mobile services along with other technology, CDMA, Reliance Communications (RCom) on Friday paid Rs 1,651 crore to the DoT towards fee for the spectrum. Along with RCom, two other CDMA players — HFCL (Punjab) and Shyam Telecom (Rajasthan) — have also been issued letters in this regard. However, they are yet to decide on making the payment for spectrum.

Meanwhile, the Cellular Operators’ Association of India (COAI), the association of GSM players like Bharti Airtel, Vodafone-Essar, Idea and others, has strongly protested the DoT’s decision and has decided to challenge it in the telecom tribunal (TDSAT).