DoT pushes for auction of GSM spectrum
|
‘Most
transparent way to process applications’ |
The Option list
Continue with existing
first-come first-served policy.
Invite bids for licences with an assured spectrum range.
Issue Letter of Intent for licences to those eligible and conduct auction.
Thomas
K. Thomas
New
Delhi, Oct. 26 Reliance Communication, Tata Teleservices and other CDMA players who want to offer dual
technology may have to fight it out with the other 46 new applicants for GSM
spectrum.
The
Department of Telecom has told the Ministry of Communication that auction of
spectrum or telecom licence would be the most
transparent and legally tenable option to process more than 576 applications
requesting permission to roll telecom services.
In
a note sent to the Communication Minister, Mr A.
Raja, on Thursday, DoT has presented three different
options to deal with the large number of applications for telecom licence and said that in case the Ministry decides to go
for an auction then all those companies wanting to offer dual technologies may
be asked to participate in the competitive bidding process.
Entry fee
It
said that spectrum may not be released at a later date if they did not take
part in the auction. DoT said that to make the
playing field level, all new applicants interested to participate in the
bidding process may be asked to pay Rs 1,650 crore as the entry fee, for a pan India licence,
to be eligible for the auction.
Though
DoT has also said that the Ministry may choose to
continue with the existing first-come-first-served policy, it has said that
auctioning the spectrum or the licence would also bring
in additional revenue to the national exchequer apart from making the process
more acceptable to various stakeholders.
DoT has
suggested that the bids can be invited either for the telecom licence or for spectrum. In both cases applicants will be
asked to pay a fee for qualifying though the fee will be refunded to those
companies who fail to win the bid in case licences
are auctioned.
The
Minister will take the final decision after consultation with the Solicitor
General.
If
the Ministry decides to continue with the existing policy of
first-come-first-served, then Reliance will be among the first to get the
spectrum. Existing GSM operators have already gone to telecom tribunal against
such a possibility.
However,
if the Ministry decides to go for auction then it gives all the 46 applicants a
fair chance to get into the telecom sector.
Those
in line include AT&T, Sistema, Videocon, Unitech, DLF, Hindujas, Moser Baer and Sterlite.
DoT said
that in any case only those companies which fulfil
all eligibility criteria, including those related to ownership and cross
holding, will be allowed to take a licence.
Source: The Hindu Business Line
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Source: The Hindu Business Line