India gets guidelines for 3G spectrum

India gets guidelines for 3G spectrum

The government throws open a level playing field by welcoming foreign players

CMN Correspondent

Friday, August 01, 2008

NEW DELHI, INDIA: The central government today announced the much-awaited guidelines for third-generation (3G) spectrum allocation.

The 3G guidelines allow 10 players in the 3G space including foreign operators.

The government also announced guidelines for Mobile Number Portability (MNP), which proposed the creation of two zones in the country for its implementation, in line with the existing practice in mature markets.

MNP allows users to retain their phone numbers while switching service operators.

The 3G spectrum guidelines provide for a reserve price for availing radio frequency. The guidelines fixed the price for a 2x5 Mhz block of spectrum for Mumbai and Delhi, and Category-A locations at Rs. 160 crore, and for Kolkata and Category-B at Rs. 80 crore and for Category-C at Rs. 30 crore.

Telecom operators can bid for the 3G spectrum in 450 Mhz band, 800 Mhz and 1,900. Operators will be exempted from paying any annual fee in the first year of operations.

The operators, however, will have to pay one per cent of Adjusted Gross Revenue as annual spectrum charge after a period of one year.

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Operators with Unified Access Service Licence (USAL) or those who are otherwise eligible for obtaining UASL according to the Department of Telecom’s December 14, 2005 guidelines are eligible to apply for 3G radio waves.

"The applicant company shall have a minimum paid-up capital of Rs. 10 crore on the date of application,” the guidelines stipulated. It also restricted foreign partnership in the company at 26 per cent.

For MNP service license, the operators will have to remit a one time non-refundable entry fee of Rs. one crore. "No single company/legal persons/MNP license applicant or MNP licensee company, either directly or indirectly, will have any equity in any of the telecom service provider and vice-versa," the guidelines said.

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