Mobile phone companies, whose permits are coming up for renewal beginning 2014, are assured of getting large chunks of second generation airwaves at market rates to ensure licence continuation, without having to participate in an auction process. But incumbent GSM operators such as Bharti Airtel, Vodafone and Idea, will get these airwaves in the 1800 MHz band, which is considered less efficient than the 900 MHz, they currently use for offering second generation (2G) voice and data services.
Last week, sector regulator Trai in a communication to the government had reiterated its earlier recommendation that these operators be given 8 MHz of second generation spectrum in the 1800 MHz band in all regions except the metros of Mumbai and Delhi, where they will get 10 MHz at market rates during licence renewal.
The telecom ministry had approached Trai after the finance ministry suggested that all mobile spectrum held by existing cellphone companies to be auctioned when their permits expire in about two years time. This proposal could have could push up costs for older operators and also created a scenario where a competitor or a new player could outbid them and take away their permits during their licence renewals.
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Last week, sector regulator Trai in a communication to the government had reiterated its earlier recommendation that these operators be given 8 MHz of second generation spectrum in the 1800 MHz band in all regions except the metros of Mumbai and Delhi, where they will get 10 MHz at market rates during licence renewal.
The telecom ministry had approached Trai after the finance ministry suggested that all mobile spectrum held by existing cellphone companies to be auctioned when their permits expire in about two years time. This proposal could have could push up costs for older operators and also created a scenario where a competitor or a new player could outbid them and take away their permits during their licence renewals.
Read More . . . . .