has sought industry''s views on the crucial question of permitting service providers
to offer access services under the same license using a combination of technology,
and limiting the number of access providers in each service area, besides views
on M&As and rollout obligations.
the present regime, M&As as well as transfer of license are permitted subject
CDMA players, including the Reliance Communications, want to offer GSM services
as well and have applied for spectrum.
Other main issues raised by TRAI
in the paper relate to defining markets, criteria for determining dominance or
market power, maximum spectrum holdings for a merged entity, cross- technology
mergers, minimum number of access providers in a service area as a result of mergers
present, no single company or legal person can, directly or indirectly have substantial
equity holding of 10 per cent or more in more than one licensee in the same service
area for the access services. The paper discusses issues related to the need and
form of substantial equity clause.
the technological changes in the booming sector, updating framework is a major
initiative on issues such as determining the number of access providers in each
service area and review of the licence norms, including substantial equity holding
and transfer of licences.
The exercise could decide on the fate of Reliance
Communications'' application with the government seeking permission to offer both
GSM and CDMA-based mobile services under a single licence.
The Anil Ambani
group company currently offers both the services in different circles under two
different licenses - Reliance Telecom (GSM) and Reliance Communications (CDMA).
Initially, cellular licences were technology-specific allowing only GSM
services, but later the licences were made technology neutral.
the spectrum allocation is based on technology chosen by the licensee. The watchdog
has sought industry''s view on whether a licence of one technology could be allowed
to get spectrum for other technology under the same licence and if so how and
at what price.
It also has sought views on criteria for spectrum allocation
and if there is any need for additional roll-out obligations for this.
regulator has sought the stakeholders'' views on mergers and acquisitions
on key points like definition of market, market share and monopoly market power.
It also seeks to know how many players should be allowed to exist in each circle
after the merger and what should be the spectrum cap for this entity.