The department of telecommunications (DoT) on Friday accepted Telecom Regulatory Authority of India?s (Trai?s) recommendation to enhance the subscriber base limit from two to five times for operators to become eligible for the allotment of additional spectrum.
It has also allowed companies to use multiple wireless technologies to provide services under their existing unified access service licence, subject to additional payment.
The first move comes as a big blow for GSM operators like Bharti Airtel, Vodafone Essar and Idea Cellular, while the second hugely benefits Anil Ambani-led Reliance Communications Ltd (RComm), which applied for pan-India GSM spectrum in February 2006. RComm has all-India CDMA operations, while it provides GSM services in eight circles.
The existing policy of allowing unlimited players in a circle would continue, but spectrum would be granted subject to availability. Those in queue for spectrum in the meanwhile can provide wireline services.
Operators would also have to pay an additional one-time charge for additional spectrum beyond 10 MHz for GSM and 5 MHz for CDMA as proposed by Trai. For each additional 1 MHz, additional charges would be Rs 16 crore, 8 crore and 3 crore for category A, B and C circles, respectively.
The move would make operators like Bharti Airtel, Vodafone Essar and Idea ineligible for additional spectrum because they would not meet the enhanced subscriber norms.