Mumbai: The Telecom
Commission, which has taken a final view on the licensing reforms proposed by
the Telecom Regulatory Authority of India (TRAI), is understood to have accepted
the proposal that there should be no cap on the number of operators in a circle.
affordability factor and the low teledensity in the country, auction of additional
spectrum is not viable option at the moment, the commission said.
commission''s report will now have to be approved by the communications minister,
A Raja and the new licensing policy will be unveiled after his approval.
of the recommendations which have been accepted include bringing down the combined
subscriber base criteria from 67 per cent to 40 per cent in the merged entity
in case of merger and acquisitions, sources said.
licensees would have to pay an entry fee for a over Rs1,680 crore for a pan-India
UASL licence to get the spectrum even if they plan to offer service in fewer circles.
The panel is
believed to have opined that giving additional spectrum to operators through auction
is not a viable idea, but the corresponding revenue share percentage should increase
for higher allocations to serve the twin purposes of its efficient use and non-hoarding
of the radio waves.
current methodology of additional spectrum allocation beyond 6.2 mhz and to GSM
players and 5 mhz to CDMA service providers, based on user numbers, in all probability
will continue, but with increased subscriber threshold and revenue share.
percentage of increase will be decided once the telecom engineering centre gives
its views on the same.
commission has been asked to evaluate the need to hike the thresholds. TRAI had
also prescribed that the threshold be increased significantly.
has not considered TRAI''s recommendation to increase the threshold cap of equity
cross holdings to 20 per cent by the same promoter in two separate companies offering
services in the same licence area, saying this would not make any difference to
the prevailing scenario.
had sought to limit the combined market share of a merged entity at 40 per cent
in terms of subscribers as well as gross revenue.