3G operators must go rural
Telcos in the upcoming 3G auctions will not be allowed to restrict these high-end services to just metros and large cities.
By ET Bureau |
NEW DELHI: Telcos in the upcoming 3G auctions will not be allowed to restrict these high-end services to just metros and large cities. The department of telecom (DoT) has decided that service providers will be subject to ���spectrum hoarding cess��� of 2.5% of the amount they bid for 3G spectrums, for every quarter, if they fail to meet the stringent rollout obligations stipulated by the government. This implies, successful 3G bidders cannot roll-out limited services, nor sit on the radio frequencies allotted to them.
The DoT has also finalised the rollout norms. Under this, within three years of being awarded 3G spectrum, the telco���s services should be available in a minimum of 30% of all district headquarters and cities and towns in that circle, off which at least 10% should be in rural areas. At the end of five years, the telco���s services must be present in 90% of the metro area and 50% of all district head quarters and cities and towns, of which a minimum 15% should be in rural areas.
���If operators do not achieve their roll out obligations, they would be given one year within which to fulfill their roll out obligations. Within this one year, the operators would be fined a spectrum hoarding cess of 2.5% of their winning auction bid per quarter. If operators do not complete their rollout obligations even within this one year, their spectrum assignment would not be canceled and spectrum allotted via an auction to a new operator,��� the DoT said in an internal note.
The DoT has also finalised the rollout norms. Under this, within three years of being awarded 3G spectrum, the telco���s services should be available in a minimum of 30% of all district headquarters and cities and towns in that circle, off which at least 10% should be in rural areas. At the end of five years, the telco���s services must be present in 90% of the metro area and 50% of all district head quarters and cities and towns, of which a minimum 15% should be in rural areas.
���If operators do not achieve their roll out obligations, they would be given one year within which to fulfill their roll out obligations. Within this one year, the operators would be fined a spectrum hoarding cess of 2.5% of their winning auction bid per quarter. If operators do not complete their rollout obligations even within this one year, their spectrum assignment would not be canceled and spectrum allotted via an auction to a new operator,��� the DoT said in an internal note.
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The DoT note also adds that the period of spectrum allotment, based on the auctions would be 20 years from the date of allotment of radio frequencies. ���If the period of existing telecom licence of a successful bidder is expiring before this period of 20 years of spectrum allotment/licence for 3G services, its existing UAS licence will be extended to a date of 20 years from the date of 3G spectrum allotment at a price.
This price would be determined by multiplying the number of years of licence extension required by the pro-rata annual licence fee of the UAS licence,��� the note added. The DoT, in another note, has also said that the government could raise about RS 1840 crone by extending the licence period to Telcos who successfully bid for 3G spectrum.
As reported earlier by ET, state-owned Telcos BSNL and MTNL need not participate in the upcoming 3G auctions. Instead, they will be allotted one block of spectrum at the price paid by the highest bidder. The DoT has also finalised the base price for third generation spectrum ��� Rs 160 crore for metros and category A circles, Rs 80 crore for category B and Rs 30 crore for category C. ET has first reported last year that these base price figures, which are double that prescribed by telecom regulator Trai, would be adopted by the DoT.
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