Continuing our coverage on Spectrum Auction Pre-Bid Conference Outcome – Read Part-1 and Part-2.
As covered in Part-1, bidders with cancelled license have no Guarantee that they will end up getting the same frequency slot in auction. DoT clarifies that Frequency reconfiguration within the same band may be carried out, with the authorization of WPC Wing, among the licensees, only when the entire spectrum held by them is liberalized. No charges will be levied for the same. DoT is silent on how much migration time that it can provide to existing operators who may be allotted different frequency slot.
On Telecom Gears / Equipment Lease and Sale Telecom is a Capital Intensive industry. If Operators whose licenses are quashed and they fail to win any spectrum in the auction, the Government will need to facilitate sale / lease of the frequency dependent assets to existing /new entrant by giving blanket WPC/ DoT /MHA as they may have availed Loan on the same and it could be a distressed liquidation. DoT responds that Equipment can be transferred by one licensee to another licensee with the approval of
WPC / DoT.
Spectrum Usage Charges Will be as per the License which shall be obtained separately.
Spectrum Hoarding DoT has no mechanism to conclude spectrum hoarding by an operator. However, provisions regarding minimum AGR for the purposes of computing spectrum usage charge and penalty provisions in the license, inter alia, for failure to meet roll-out obligations may be seen in this regard in order to discourage operators from holding precious natural resource.
And in the last part, we’ll see DoT’s answers to What if Auction Fails and on making the field even for all operators.