DoT takes steps to e-auction 3G spectrum

DoT takes steps to e-auction 3G spectrum

The decision comes amid a tussle between the ministries of Finance and Telecom over 3G guidelines

Monday, August 18, 2008

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NEW DELHI, INDIA: The Department of Telecom on Sunday started the process for 3G mobile services and invited bids from Indian and foreign companies to conduct an auctioning of the spectrum in 22 telecom service areas.

As the first step the DoT has invited ‘request for proposal’ (RFP) to kick off the auction process. Once the RFP is issued the DoT would hold a pre-bid conference on August 27. Then on September 19 the financial bids of those who meet the criteria for selection would be opened.

The eligibility criterion states that for the e-auction, the agency could be an Indian company, a foreign firm incorporated outside the country or a joint venture. However, it should not have any equity directly or indirectly in any telecom or Internet service provider in India.

It also clearly mentions that any telecom company or ISP shall not have any stake in the bidder company.

Then, the other condition is that the bidder company should have the experience of having conducted at least five e-auctions in the last three years and the total value of all e-auctions conducted should be at least Rs 2,500 crore.

It would accept the application till September 2. DoT’s decision to issue a RFP comes amid a tussle between the ministries of Finance and Telecom over the guidelines of 3G mobile services.

Last week, the Finance Ministry had criticized the Department of Telecommunications (DoT) for announcing 3G guidelines without consulting the financial implications of the guidelines and this had raised doubts whether the service would be launched in time.

Responding to the criticism, Communication and IT Minister A Raja had stated that the Ministry of Finance was consulted on all the financial implications relating to 3G-spectrum pricing and the Finance Ministry has also nominated its representative in the joint committee, which would oversee the auctioning of radio frequency.

He added that there would not be any change in the schedule for auction and rollout of 3G services in the country.

TRAI’S OPPOSITION

Meanwhile, the Telecom Regulator TRAI has raised objections against the DoT’s decision to divide the whole country in two zones instead of one as recommended by it for mobile number portability facility.

In a letter to telecom secretary Siddartha Behura TRAI said: “The guidelines envisage two number portability zones. You would kindly recall that the authority had recommended a single zone having one country operator for licence of MNP clearing house and number portability database and this was also accepted by the DoT.”

According to the DoT guidelines announced on August 1, the country will be divided into two MNP zones consisting 11 service areas with two metros in each zone.

Trai has also objected to the clause that all basic, national long distance (NLD) and international long distance (ILD) service providers shall support the routing of calls to ported numbers, saying this may have impact on tariffs of both and local and STD calls.

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