Telecom Regulatory Authority of India has suggested that there should be no cap on the number of operators in any service area and asked the Department of Telecom to form a multi-disciplinary committee to frame a spectrum allocation criteria.
The committee should have members from DoT, TRAI, Wireless Planning and Coordination wing of Communications Ministry and operator associations, the regulator said in its recommendations on reforms in the licensing policy released on Wednesday.
GSM operators wanted a cap on the number of telcos in a circle saying unlimited players are putting strain on the scarce spectrum, leading to poor services.
The regulator has suggested a one-time fee from operators for allocation of spectrum beyond 10 Mhz. At present, a company pays one per cent of its revenue to the government for additional spectrum, being allocated based on the subscriber base.
The suggested charge for allocation of 2×5 Mhz of spectrum in category A circles and Mumbai and Delhi is Rs 80 crore, while for category B circles and Chennai and Kolkata, it is Rs 40 crore. For category C circles, the one-time fee is 15 crore.
For allotment of 1 Mhz spectrum, TRAI suggested, a one-time fee of Rs 16 crore should be charged.
In the recommendations, which are subject to DoT’s approval, the regulator has also sought auction for future allocation of spectrum except in case of allotment to mobile operator on 800, 900 and 1800 Mhz band.
TRAI Chairman Nripendra Misra said the one-time fee for additional spectrum is the most neutral criteria to create a level playing field.