The finance ministry wants all mobile spectrum held by existing cellphone companies to be auctioned when their permits expire in about two years. The suggestion, if accepted, could push up costs for older operators such as Bharti Airtel, Vodafone and Idea.
At present, telcos offer 2G mobile services in two different spectrum bands - the 900 MHz band that is considered highly cost efficient and largely held by incumbent GSM mobile operators, and the 1800 MHz band, held by all later entrants, including dual-technology companies such as Reliance Communications and Tata Teleservices.
Under the existing policy, mobile phone companies can pay market rates and retain their 2G spectrum in the 1800 MHz band when their licences are renewed.
But the finance ministry has argued that allowing these firms to retain any part of their spectrum when their permits come up for renewal may result in "licences being treated as in perpetuity".
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At present, telcos offer 2G mobile services in two different spectrum bands - the 900 MHz band that is considered highly cost efficient and largely held by incumbent GSM mobile operators, and the 1800 MHz band, held by all later entrants, including dual-technology companies such as Reliance Communications and Tata Teleservices.
Under the existing policy, mobile phone companies can pay market rates and retain their 2G spectrum in the 1800 MHz band when their licences are renewed.
But the finance ministry has argued that allowing these firms to retain any part of their spectrum when their permits come up for renewal may result in "licences being treated as in perpetuity".
Read More . . . . .