Norms issued for 3G, number portability

Special Correspondent Process for spectrum auction will begin in the next 15 days
Govt. hopes to garner over Rs. 30,000 crore
Base price fixed at Rs. 2,020 crore for each bid

NEW DELHI: The Centre on Friday announced detailed guidelines for the roll-out of 3G (Third Generation) mobile services that would allow better multimedia services and also quick data and video transfer. It also cleared guidelines for implementing mobile number portability (MNP) allowing mobile subscribers to switch from one operator to another without changing their mobile numbers.
Announcing the guidelines here, Union Communications and Information Technology Minister A. Raja said: “Any player who holds a unified access service licence (UASL) or has expertise in 3G services can take part in the global auction for the standalone 3G spectrum. A company can first bid for the spectrum and later get UASL licence to start the services.”
India has 60 Mhz of 3G spectrum available. The auction will take place in the 2.1 Ghz band. 3G services are likely to be available in the middle of next year.
Stating that initially, two to five operators would be allowed to offer 3G services in each circle, Mr. Raja, however, said that in the Delhi and Mumbai circles, only one operator would initially be allowed to offer 3G services, apart from State-owned Mahanagar Telephone Nigam Limited (MTNL) due to spectrum crunch. Similarly, another government telecom giant, Bharat Sanchar Nigam Limited (BSNL) would get 3G spectrum. For a pan-India licence, the base price has been fixed at Rs. 2,020 crore for each bid, while UASL fee would be Rs. 1,650 crore.
The Government hopes to garner over Rs. 30,000 crore from the auction of 3G spectrum. “Though there will be no annual spectrum charge in the first year, a licensee will have to pay annual spectrum charge of one per cent of annualised growth rate after a period of one year,” he added.Spectrum auction
Stating that the process for spectrum auction would begin in the next 15 days under the supervision of an independent agency to ensure full transparency, Mr. Raja said there would be strict roll-out obligations to avoid spectrum hoarding.
“If the licensee does not achieve its roll-out obligations, it shall be given one year to do so, but on payment of 2.5 per cent of its successful auction bid per quarter or part thereof. If licensee does not complete its roll-out obligations even within this one-year, the spectrum assignment will stand withdrawn,” he said.
About mobile number portability (MNP), Mr. Raja said for granting licenses, the whole country would be divided into two zones consisting of 11 licensed service areas each with two metro service areas in each zone.
“There will be only one licensee for MNP services in each MNP zone, while the MNP service provider and the mobile operators would not be allowed to have equity (direct or indirect) stake in each other’s operations. Initially, MNP will be implemented in the four metros in the next two months and subsequently roll-out in the rest of the country over the next 6-12 months,” he said.
Ref : THE HINDU, Page no.15, 02-08-08.