Telecom world readies for third generation

The operators would be offered spectrum in the 2.1 GHz band. Licences would be issued through a controlled, simultaneous ascending e-auction, by a specialised agency to ensure transparency in the selection process, said the communications minister A Raja in a press conference on Monday.

The operators would also be required to pay additional spectrum charge of 0.5 percent of their total adjusted gross revenue AGR as the recurring annual spectrum charge. This additional revenue share is proposed to be one per cent of AGR after 3 years from the date of spectrum assignment.

During the first five years, the Government will not permit any trade of spectrum, mergers or acquisitions. Last year, the telecom regulator Telecom Regulatory Authority of India Trai had proposed that 3G spectrum should be auctioned.

On Trai8217;s recommendation that only existing operators be allowed to bid for 3G spectrum, Raja said: 8220;Having debated all the issues, we feel that all players should be allowed to offer 3G services.8221; He, however, did not elaborate on whether Department of Telecom8217;s DoT decision to go for open competition would be referred back to Trai or not.

CDMA operators like Reliance Communications and Tata Teleservices would be allowed to offer 3G equivalent services EV-DO in the existing 800 MHz.

8220;If the CDMA based service providers ask for the EV-DO carrier of 2215;1.25 MHz, they would have to pay an amount proportionate to the highest bid for spectrum in 2.1 GHz band,8221; said the minister.

In another major decision, the Government also announced that the spectrum for providing broadband wireless access services Wimax would be released. The move will enhance penetration as well as growth in broadband subscribers.

Wimax would be allowed in 2.5 GHz frequency and each service provider will be allotted spectrum up to 2215;10 MHz in 2.5 GHz band. The spectrum for Wimax services would also be auctioned and the base/reserve price would be 25 per cent of amount for 3G spectrum.

The roll-out conditions, including rural roll-out, as well as stiff penalties for compliance of the same has been stipulated.

Other service providers would also be considered for spectrum allotment for Wimax services in the 2.3 GHz and 3.3-3.4 GHz band.