The Scam tainted DoT has finally published Responses to stakeholder Queries on the upcoming Telecom Spectrum Auction in India. This time however, the DoT has been careful not to make this Responses a legally binding document as it was caught on the wrong foot during 3G Spectrum Auction. Here is an excerpt of the issues raised by Operators and New Entrants
Foreign participation
The Government is considering allowing foreign entities to participate in the auctions. FDI shall be subject to laws of India and not the laws of the foreign country / countries.
What about Cancelled Licensees like Idea Cellular, MTS Sistema and Uninor serious about continuing operations?
If operators whose licenses have been cancelled win in the auction, can they be assured of currently allocated 800MHz and 1800 MHz spectrum bands to be re-allotted ? DoT responds in the Negative.
This cannot be confirmed SACFA clearances are to be revalidated, wireless operating licenses are to be obtained afresh, deployment plans to be re-submitted and approvals obtained. The frequency spots will be indicated in the NIA.[Notice Inviting Applications]
Spectrum allotment within 40 days of conclusion of the auction. Contiguous spectrum of 5 MHz in 1800 MHz shall be made available to the successful new entrants. Specific frequency spots would be indicated in the NIA. Wherever contiguous spectrum is not indicated / available currently, necessary action would be taken to ensure contiguity before assignment of frequencies at the end of the auction.
What happens if Existing Operators Fail to Win in Spectrum Auction in a Particular Circle ?
Existing operator who fail to win spectrum in some circle is thinking of continuing services to the customer by availing roaming services from other operators in same service area. DoT clarifies this cannot happen as provisioning/ delivery of service(s) to customers/ subscribers, licensee requires its own infrastructure, which includes spectrum also. Further, Porting of subscribers would be required and shall be governed by regulations/ directions/ guidelines issued by TRAI from time to time.
No Reservation for New Entrants
On a question to whether a minimum of 10 MHz of spectrum is reserved for new entrants, DoT responds in the Negative, implying Auction is Open to all except that New Entrants have to bid for Minimum of 5 MHz in a circle. However, New entrant may bid in both spectrum auctions as “New Entrant”.
Why DoT is BUYING More Time to be Clear on Issues ?
India is a Land of Scams and Economy runs in an Oligarchic setup [ Largest Democracy is good in High School textbooks] Thus issues like Liberalization, Level Playing Field, Interest on Deferred Payment of Spectrum, etc are undecided, that’s all I can go on record even though have more information on the same.
Stay tuned for more updates!