New 3G norms may not go with old licences

Department of Telecommunications may have to issue new licences for 3G services as it will be difficult to accommodate...

Department of Telecommunications (DoT) may have to issue new licences for 3G services as it will be difficult to accommodate the winners of 3G spectrum auction under the existing unified access service licence (UASL) regime.

Under the draft guidelines for auction and allotment of spectrum for 3G services, both Indian and foreign companies could participate in the bidding process even if they do not have licences to provide services. They can be issued UASLs once they are successful in bidding. Some DoT officials think the department might face legal hurdles if UASLs are issued to the winners of bids for 3G spectrum.

If a new company wins in 3G spectrum auction, it will be issued a UASL before it can become operational. The existing applicants for 3G services may consider this as a backdoor entry. Currently, there are about 342 applications for UASLs in different circles. The licences are issued on a first-come-first-served basis. This seniority on the basis of date of application is also followed for issuing start-up spectrum for 2G services.

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The UASL guidelines will make the winners of 3G spectrum auction eligible for 2G spectrum. Under the existing system, UASL holders are entitled for a start-up spectrum of 4.4 MHz in 2G band. Therefore, if the new entrants are issued 2G spectrum on priority basis, the existing applicants will raise hue and cry and may go to court.

Even if the new entrants are not issued 2G spectrum on priority, it will allow new players for 2G spectrum and there is not just enough spectrum needed for the growth path of even the existing players.

In case, DoT decides to issue a new category of licences, it will have to seek fresh recommendations of the regulator. The whole process may take at least two months.

The static

•The UASL guidelines will make the winners of 3G spectrum auction eligible for 2G spectrum

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• UASL holders are entitled for a start-up spectrum of 4.4 MHz in 2G band

•If the new entrants are issued 2G spectrum on priority basis, existing applicants will raise hue and cry and may go to court

•Currently, there are about 342 applications for UASLs in different circles. The licences are issued on a first-come-first-served basis