DoT proposes separate spectrum charges for 3G services

11 September 2006

Mumbai: Telceom service providers planning to offer third generation (3G) mobile services will have to pay for separate spectrum. The department of telecom (DoT), however, is yet to decide whether there should be a separate service licence for offering 3G services.

DoT will consider the proposals of the Telecom Regulatory and Advisory Commission of India (TRAI) on 3G services before deciding on the licensing requirements. But 3G services will carry a spectrum (wireless) charge.

The DoT, however, has not yet decided on how this would be charged - whether to fix an entry fee and annual revenue share or to auction spectrum outright.

There were no separate spectrum charges for similar services like 2G and 2.5G as these services were offered on the same voice telephony spectrum. However, 3G services need a different band of spectrum, say DoT officials.

Telecom service providers, however, contest the DoT proposal. They content that the current unified access services licence allows them to offer 3G services as well.