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Monday, June 28, 2010

3G winners to get spectrum soon

Tags:3G|BWA
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BWA spectrum
NEW DELHI: The government will ‘immediately’ give broadband spectrum to the six companies that bagged these airwaves in the recently concluded auctions, but the launch of these services will depend on rollout plans of individual companies, a top telecom department official said.

“The letter of intent will be issued next week and the broadband wireless access (BWA) spectrum will be given after that. They can start using the spectrum immediately,” telecom secretary PJ Thomas told reporters.

He said the Centre will keep its commitment of handing over the third generation (3G) spectrum to all the seven companies—Bharti Airtel, Vodafone Essar , Airtel, Idea Cellular Reliance Communications , S Tel, Tata Teleservicesthat bagged these airwaves by September 1. Telcos are expected to roll out high-end data services on mobiles in 3-6 months of being awarded 3G airwaves.

“The letters of intent (for 3G) have already been issued. Prior to the auctions , we had said that 3G spectrum will be given on September 1. The allotment will happen as per schedule,” he added.

The government also said that India will hold its next round of third generation spectrum auctions only after December 2012. “We have exhausted all the 3G in our possession during the recently concluded auctions.

As per the agreement with the defence forces, they are scheduled to vacate another 5 MHz of 3G airwaves by December 31, 2012. Future auctions, if any, can be held only after that,” Department of Telecom’s joint secretary JS Deepak said.

The combined revenues for the Centre from the 3G auction that ended last month and the sale of broadband wireless access (BWA) spectrum is Rs 1.06 lakh crore. The government expected to get Rs 35,000 crore.

Global banking major N M Rothschild , which conducted both the 3G and broadband auction, has got a commission of Rs 30.5 crore from the government.

This is because, prior to the auction, the government had agreed to pay Rothschild 0.115% of the difference of the final bid amount and the reserve price as its fee for conducting the bidding process.

Infotel Broadband, the only firm that bagged BWA spectrum in all circles was acquired by Mukesh Ambani-led Reliance Industries (RIL) and department of telecom officials, during the media briefing, also clarified that this deal was not in violation of any laws. “Spectrum cannot be sold, but change of ownership is permitted,” Mr Deepak said.

Other companies that won BWA spectrum include Bharti Airtel, chipmaker Qualcomm, Tikona Digital Networks, Aircel and Augere (Mauritius) Ltd. DoT officials also dismissed the allegation that faulty auction process had led to companies placing high and irrational bids.

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