Govt releases guidelines for 3G service, MNP

Govt releases guidelines for 3G service, MNP ''

The government today set the ball rolling for introduction of next generation (3G) mobile services, as also mobile number portability that would allow users to switch operators while retaining existing numbers. The new guidelines for 3G spectrum, released today, provides for a reserve price for availing of radio frequency. The price for a 2x5 Mhz block of spectrum for Mumbai and Delhi and category-A shall be Rs 160 crore and for Kolkata and category-B Rs 80 crore and for category-C Rs 30 crore. Government has also decided to allow up to 10 players in the 3G space, including eligible foreign players. The guidelines for Mobile Number Portability, also released by the government today, proposes dividing the country into two zones for implementing the scheme that is prevalent in most mature telecom markets.

The 3G spectrum will be auctioned in 450 mhz band, 800 mhz and 1,900 mhz and the guidelines exempt operators from paying any annual fee in the first year of operations. Operators, however, shall be liable to pay an annual spectrum charge of one per cent of AGR after a period of one year. All those who hold a Unified Access Service Licence or those who are otherwise eligible for obtaining UASL as per DoT guidelines of December 14, 2005 would be eligible to apply for 3G radio waves. As per the guidelines, "the applicant company shall have a minimum paid-up capital of Rs 10 crore on the date of application. Foreign equity shall be subject to extent guidelines and regulation. However, equity of foreign partner in the company shall not be less than 26 per cent." On MNP front, the guidelines said a one time non- refundable entry fee of Rs one crore is required to be paid for securing the service license. "No single company/legal persons/MNP license applicant or MNP licensee company, either directly or indirectly, will have any equity in any of the telecom service provider and vice-versa," the guidelines said.


GSM operators hail 3G policy
NEW DELHI: GSM industry on F hailed the 3G mobile telephony guidelines announced by the government saying the move will boost mobile broadband in the country. The world-wide association of GSM operators (GSMA) and lobby of domestic players COAI in a joint statement said, "The Indian government's 3G policy is a fair and transparent way of allocating additional spectrum among the service providers." Further, the automatic extension of the existing 2G licences would ensure continuity and stability of services, the associations added. A leading telecom vendor Ericsson termed the 3G policy a next step in the telecom revolution. "This will help bridge the urban-rural digital divide and lead to penetration of broadband services in the country," P Balaji, Vice President (Marketing and Strategy), Ericsson India, said. CDMA operators' association AUSPI, however, said they were still studying the guidelines. But the CDMA Development Group, a CDMA user group, welcomed the policy and said DoT's decision to open globally harmonised band in 450 MHz, 1900 MHz and 2100 MHz is good for the industry. Industry body FICCI said the 3G policy would attract huge investments in the country to the tune of 8-10 billion dollars over the next two to three years. "The 3G guidelines would allow an open global and transparent auction process consistent with best global practices," FICCI President Rajeev Chandrasekhar said in a statement. CDMA technology innovator Qualcom said the 3G policy will benefit the entire wireless communication eco-system.

Handset, service costs key to 3G success in India
Telecom: Govt to start MNP in 2 months
Govt allows mobile number portability; to start in 2 months
MTNL shares up 6% on 3G spectrum allocation
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India unveils 3G policy

India on Friday joined the elite list of countries to announce a policy for third generation mobile service that will enable customers to enjoy voice, video, data and downloading facilities on their mobile phones.
Telecom Minister A Raja, unveiling the much-awaited 3G policy that would allow up to 10 players in a service area including foreign companies, said that the government expects up to Rs 40,000 crore (Rs 400 billion) from the auctioning of spectrum for 3G services.
India has 60 Mhz of 3G spectrum available. The auction will take place in the 2.1 Ghz band.
Government has set a base price of Rs 2,020 crore (Rs 20.20 billion) for each bid for a pan-India license. Initially, there will be three to five operators to sell the 3G services, including state run BSNL and MTNL [Get Quote].

The PSUs have an edge to start the 3G services earlier than others as they do not have to bid for the spectrum as they only have to match the highest bid in their respective circles. BSNL CMD Kuldeep Goyal said the PSUs should be able start the 3G service in six months. MTNL shares soared 3.76 per cent to Rs 107.70 on the priority treatment.One block shall be allocated to MTNL in Delhi and Mumbai/Metro service areas and BSNL in other areas.

He said an external agency would be appointed in the next 15 days to oversee the e-auctioning process and by December he expects the mobile operators to roll out 3G services.
As per the guideline, any licensed telecom operator can bid for 3G spectrum and the radio waves will be auctioned in 5-10 blocks depending on the availability. Each successful bidder will be allocated only one block in a service area.As per the guidelines, spectrum will be auctioned in the 450 Mhz, 800 Mhz band for EVDO (for CDMA players) and in 1900 band when it is available.
According to the reserve price for 3G spectrum fixed by the government, 2x5 Mhz block of spectrum for Mumbai, Delhi and category-A cities would cost Rs 160 crore (Rs 1.60 billion), for Kolkata and category-B Rs 80 crore (Rs 800 million)and category-C Rs 30 crore (Rs 300 million).

India, which has 287 million wireless subscribers, saw its mobile user base grow 25 times in the last five years making it the second largest wireless market in the world after China.
There are strict roll out obligations for 3G operators to discourage hoarding of spectrum. If the licensee does not achieve the roll out obligations, even after being given one year to do so, would have to make a payment of 2.5 per cent of its successful auction bid per quarter. And after that also if it does not roll out service, then its spectrum will be withdrawn.


Source:ET,rediff