India to issue telcoms permits

NEW DELHI, INDIA: India said it would issue telecoms licences to all firms which filed applications before Sept. 25, but would not automatically grant them the radio spectrum needed for wireless services.

The government received 575 applications from 46 firms ranging from global telecoms giant AT&T to Indian real estate developers DLF and Parsvnath.

Companies are rushing to launch services in some or all of the 23 zones that make up the world's fastest-growing market.

The telecoms department had initially set Oct. 1 as the last date for applications, but later said it would first consider those that came in before Sept. 25.

Call rates as low as 1 U.S. cent a minute and cheap handsets have driven the telecoms boom in India, where mobile firms have been adding more than 8 million subscribers a month.

Investors see further growth, especially in rural areas, as still only one in five people has access to a telephone.

But rapid growth has led to a paucity of spectrum, the radio frequencies used to transmit voice and data.

Even though licences come bundled with an initial quantum of spectrum to start operations, firms like Vodafone Plc-controlled Vodafone Essar Ltd and Idea Cellular Ltd are yet to receive spectrum for some telecoms zones for which they received licences over a year ago.

The government will issue letters of intent to the eligible applicants and will follow up with licences in the order in which the firms meet the conditions set out in the letters, the statement said.

Firms will have to pay as much as 16.5 billion rupees ($420.1 million) for a licence to operate across the country.

Those which get a licence must apply for spectrum, which will be granted, if available, in the order in which applications are received.

(c) Reuters