Spectrum crunch may hit cos' GSM plans
Governmrnt clearances for the GSM plans of Reliance Communications, HFCL and Shyam Telecom as well as the launch of mobile services by Swiss-based Bycell Cellular may be delayed due to the non-availability of spectrum.
By TNN |
NEW DELHI: Governmrnt clearances for the GSM plans of Reliance Communications, HFCL and Shyam Telecom as well as the launch of mobile services by Swiss-based Bycell Cellular may be delayed due to the non-availability of spectrum, department of telecom sources told ET. The DoT feels that fresh allocations (slated to happen before the defence forces release 45 Mhz of spectrum for commercial use) will primarily cater towards clearing pending applications made by existing service providers, reports Joji Thomas Philip.
But DoT’s Rs 1,000-crore project to free 45 Mhz spectrum has been thrown out of schedule due to the finance ministry’s reluctance for the Rs 900-crore supplementary grant for the project. In fact, even the tenders for network equipment for this project, the first phase of which was slated to be completed by September ’06, is yet to be issued. DoT sources admit that this this will be completed only between March and June ’07. Even after June ’07, when the defence forces free spectrum, further delays in clearances can occur unless the DoT works out a formula to distribute the 45 Mhz of spectrum. Due to the new applicants, DoT can’t go ahead with its initial plans, which included allotting 25 Mhz for 3G services and distributing the rest between the remaining GSM operators on account.
“The license conditions state that allocations cannot be made only to existing players. The stance that quantity released is not sufficient to be distributed among all players will not hold legally. We may have a scenario, where the DoT may wait for further release of spectrum by the defence forces before distributing the initial 45 Mhz to avoid any legal tangles,” said an industry analyst.
However, the DoT maintains, that none of the players in question had submitted the requisite plans for launch of their GSM operations. “These issues will come into play only if they indicate the seriousness of their plans by providing the requisite details,” DoT sources added. What makes the equation even more complex is the fact that Idea Cellular and Aircel Cellular have applied for licenses to begin operations on a pan-India basis.
But DoT’s Rs 1,000-crore project to free 45 Mhz spectrum has been thrown out of schedule due to the finance ministry’s reluctance for the Rs 900-crore supplementary grant for the project. In fact, even the tenders for network equipment for this project, the first phase of which was slated to be completed by September ’06, is yet to be issued. DoT sources admit that this this will be completed only between March and June ’07. Even after June ’07, when the defence forces free spectrum, further delays in clearances can occur unless the DoT works out a formula to distribute the 45 Mhz of spectrum. Due to the new applicants, DoT can’t go ahead with its initial plans, which included allotting 25 Mhz for 3G services and distributing the rest between the remaining GSM operators on account.
“The license conditions state that allocations cannot be made only to existing players. The stance that quantity released is not sufficient to be distributed among all players will not hold legally. We may have a scenario, where the DoT may wait for further release of spectrum by the defence forces before distributing the initial 45 Mhz to avoid any legal tangles,” said an industry analyst.
However, the DoT maintains, that none of the players in question had submitted the requisite plans for launch of their GSM operations. “These issues will come into play only if they indicate the seriousness of their plans by providing the requisite details,” DoT sources added. What makes the equation even more complex is the fact that Idea Cellular and Aircel Cellular have applied for licenses to begin operations on a pan-India basis.
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