DoT sources said that the application forms for obtaining the provisional licences would be despatched to the companies on Monday. "We will grant provisional licences soon after receiving valid applications," a senior DoT official said.

Besides Reliance, Ascom and ICO, the other companies which have joined the fray to offer GMPCS services are King Satellite Ltd, Aces India Pvt Ltd, and Avineh Technologies Pvt Ltd. The firms are expected to start work on the gateways soon after getting the clearance.

Operators can also import handsets using the special import licence (SIL) without routing the application through DoT. Officials indicated that operators would benefit with DoT speeding up the process, but maintainedthat only serious contenders stood a chance in this segment.

"The question is not only of a licence, but the ability of the applicant to deliver considering the very high level of investment, expertise and commitment required for running the service," said a senior department functionary.

Iridium, the first company to launch GMPCS in India, has got a headstart over competition in India. In pursuance of the government's decision to allow GMPCS in the country, top priority action was taken to provide the provisional licence agreement to the company. A high-level inter-ministerial committee worked out the terms and conditions of the licence agreement including the fees and security-related clauses in consultation with various security agencies.

The company, however, did not start commercial services on November 1, alluding the delay to a variety of reasons. DoT sources maintained that in addition to speedy approvals, the procedure for importing handsets via the SIL route was conveyed to the company well inadvance. "We fail to understand why the company did not avail itself of this facility in anticipation of the provisional licence coming through in time," said sources.

The clearance has also helped IITL to save on a punitive charge of $30 million for timely readiness for commercial launch, in addition to earning 4,000 incentive warrants worth $14.25 million.

Under the terms and conditions, the licence fee payable for the service will have two components, with a fixed component of Rs 1 crore per annum payable from the effective date of the licence, and a variable component proportional to the revenue generated from the service. The company will have to pay 16 per cent of the gross revenue earned per year from the launch of the service.

The letter of intent (LoI) is extendable to all eligible applicants on a non-exclusive basis. The LoI shall be valid for a period of one year, and licences have to be signed before the expiry of the LoI validity.

A company also has to obtain SIA clearance for the termsof foreign equity participation, capped at 49 per cent. It also needs to have a net worth of Rs 100 crore, and has to issue equity shares to all promoters. The licence is also subject to a provisional clearance from WPC for frequency allocation, and furnish a bank guarantee of Rs 1 crore for a period of two years.