2G scam: How telcos turn rollout process into a sham

NEW DELHI: The rollout obligation is one of the most important terms and conditions of the mobile license, but companies usually try to find their way around this mandatory stipulation.

Within a year of getting licences, companies are expected to roll out infrastructure in 10% of the district headquarters (DHQ) within the service area. Similarly, during the first three years, 50% of the DHQ needs to be covered. These conditions exist to ensure that companies do not waste precious spectrum , infrastructure and service rolls out quickly, giving consumer the benefit of competition. It also obligates major capital expenditure on the license holders.

However, except for those companies that are serious about business, most firms pick the smallest DHQ in every state and put a single cell site on any tower under the shared infrastructure scheme. Most states have 20-25 DHQs and the smallest DHQ can usually be covered with a single cell site. So for practical purposes the rollout obligation can be met with just three to four cell sites through borrowed infrastructure and one mobile switching centre.

In most cases companies avoid having any subscribers since the license does not obligate them to have any. Serving subscribers will mean expenses customer care, advertizing and billing and others. So essentially, companies just meet this need on paper and absolutely no public interest is served by though such rollouts , since firms are essentially waiting to sell their stakes at a large premium at the first given opportunity.

Escape Route

Within a year of getting licences , companies expected to roll out infrastructure in 10% of district headquarters (DHQ) within service area During the first three years, 50% of the DHQ needs to be covered Most firms pick smallest DHQ in every state and put a single cell site on any tower In most cases companies avoid having any subscribers since the license does not obligate them to have any.