TRAI in its recommendations released just a while ago is of the view that 3G Spectrum Licenses be restricted to existing Telecom Players – UASL / CMTS licensees.? These recommendations come at a critical time as the Spctrum Auction schedule is already announced. DoT is of the view that 3G licenses could be awarded to
new prospective service providers should have minimum one year experience in Telecom Sector in India or abroad of 8 providing at least 5 lakhs (500000) wireless access lines (2G, 3G services).
TRAI is of the view that DoT’s view doesn’t consider service providers who have been granted UAS license recently. [Unitech, Videocon Datacom, Swan, Loop etc] Anyway,they turned out to be speculators.
Why TRAI is against permitting non-existing players to be allowed at 3G auction ?
TRAI is of the view that the bidder may not have 2G UASL license and hence may bid for higher in 3G auction which will result in,
- High tariffs for 3G services
- Deprive existing operators from providing 3G services
and finally adds,
The Authority firmly believes that in the interest of the growth of the Indian telecom sector, entry of this kind must be strongly discouraged.
TRAI’s recommendations also include,
- The spectrum module for auction should be 2X5 MHz.
- The total availability of spectrum should be made public at the stage of the auction so that the bidders are fully aware regarding the first and subsequent phase of allocation on the price determined by the auction.
- Further review to be taken after a period of 3 years
So the problem we have on hand is, if foreign Telcos without 2G licensee are prohibited from the auction, then spectrum auction may result in lesser revenues to the Government. And if they are permitted and if 3G services are costly [as assumed by TRAI], it is the question of affordability and acceptability by consumers.