2G spectrum auction: New entrants to face stringent conditions to enter Indian telecom market

Telecom Lead India: The proposed 2G spectrum being held
on November 12 will pave way for telecom new players to enter the Indian
telecom market. But they will face stringent conditions to join the spectrum
auction.


DoT said holder of CMTS/ UAS licenses will be treated as
existing player.


The existing operators will be allowed to take maximum
two blocks of 1.25MHz each in each service area.

 

Companies (not an existing licensee) eligible for grant
of Unified License (UL) OR a Unified Access Service License which would be the
present UASL without spectrum, will be treated as new entrants and will have to
obtain a Unified License.


The companies/licensees whose licenses are slated to be
quashed as per the direction of Supreme Court will be treated as new entrant.
Hence new entrants, who will be looking for bidding, will include Sistema Shyam
(MTS India), Videocon and Uninor.


According to DoT, in the case of 1800 MHz band, new
entrants will be required to bid for minimum of 4 blocks each of 1.25MHz in
each service area.


New entrants will also be allowed to bid for one
additional block of 1.25MHz in each service area.


According to DoT, block Size shall be 1.25MHz (Paired) in
the case of 1800 MHz band.

 

A minimum of 8 blocks each of 1.25MHz (10MHz) will be put
to auction in all service areas. In addition, a provision will be made for
spectrum up to 3 blocks each of 1.25MHz (3.75 MHz), wherever available, after
reserving spectrum for refarming against allocation in 900 MHz band for the
licences expiring during 2014 to 2016 and also taking care of guard band
requirements, for topping up the 8 blocks of spectrum put to auction i.e. up to
a total of 11 blocks each of 1.25MHz to meet the requirement of new entrants,
if such an exigency arises, and to ensure that the entire quantum of spectrum
of 10MHz in each service area is allocated in the auction.

 

DoT said for 800MHz band, the block Size will be 1.25MHz
(Paired).

 

A minimum of 3 blocks each of 1.25MHz (3.75MHz) will be
put to auction in all service areas. In addition, a provision will be made for
spectrum of one block of 1.25MHz, wherever available, for topping up the 3
blocks of spectrum put to auction, to meet the requirement of new entrants, if
such an exigency arises, and to ensure that the entire quantum of spectrum of
3.75MHz in each service area is allocated in the auction.


In the case of 800 MHz, the existing operators will be
allowed to bid for 1 block of 1.25MHz in each service area.


New entrants will be required to bid for minimum of 2
blocks each of 1.25MHz in each service area.


New entrants will also be allowed to bid for one
additional block of 1.25MHz in each service area.


 

editor@telecomlead.com