Economic Times | March 7, 2011 | Joji Thomas Philip
NEW DELHI: All leading GSM operators will have to give up ‘excess’ airwaves they have when their mobile permits come up for renewal beginning 2014. This implies companies such as Bharti Airtel, Vodafone Essar and Idea Cellular, among others, which currently have up to 10 MHz or units of 2G airwaves in many regions, will be given only 6.2 units of radio frequencies when they renew their permits, according to a telecom department internal note reviewed by ET. Besides, telecom companies will also have to pay market rates for this 6.2 MHz of airwaves in every region when they renew their licences.
This has already been communicated to all mobile phone companies. “On renewal, spectrum is to be assigned maximum up to the prescribed limit. Value of spectrum to be paid separately,” said a telecom department’s letter that was sent to all service providers last week. Communications minister Kapil Sibal would be engaging the industry in a full-fledged discussion beginning this week.
At present, telcos hold separate permits for each of the 22 circles in the country and these are valid for a period of 20 years. The government gave away mobile permits from mid-90s. About 11 mobile phone companies will have to renew their permits between 2014 and 2021.
These developments come even as GSM operators maintain they don’t hold any ‘excess’ airwaves. India’s telecom sector has been mired in a controversy regarding the pricing of ‘excess’ second generation spectrum, used for basic mobile services since 2008. These companies – notably Bharti Airtel, Vodafone Essar, Idea Cellular and BSNL – claim that mobile permits entitle them to 15 units of 2G airwaves in every region, and add that there is no capping of airwaves at the 6.2 MHz limit.
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