BackTrai queries may delay auction of radio waves
Trai secretary says in DoT notice inviting applications, Trai recommendations have not been followed in entirety
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New Delhi: India’s telecom regulator has raised with the telecom ministry, the issue of some differences between its recommendations on the allotment of mobile telephony spectrum, and the latter’s release inviting applications for the same—a move that could delay the long-pending auction and allotment of radio waves even more.
In a letter dated 2 January, Telecom Regulatory Authority of India secretary Rajeev Agrawal wrote to his counterpart in the department of telecommunications (DoT) M.F. Farooqui that in the so-called notice inviting applications (NIA) issued by the ministry the regulator’s recommendations on “unified licence (Access Services) have not been followed in entirety".
He added that there were four specific issues that required “immediate attention." Mint has reviewed a copy of the letter.
The NIA is a legally binding document listing rules related to the auction that is scheduled to begin on 3 February.
The four issues are: ensuring that the change in technology platforms used for mobile services, allowed according to the NIA, does not affect customers; the differential treatment of spectrum in the 900 megahertz (Mhz) and 1800Mhz band (that the NIA treats as the same); more clarity on the roll-out obligations; and reducing the so-called performance bank guarantee that a telco would forfeit if it missed its roll-out obligations from the ₹ 35 crore mentioned in the NIA to ₹ 7 crore in Delhi, Mumbai and Kolkata, and ₹ 14 crore in all other circles.
Agrawal’s letter suggests that the ministry modify its NIA to reflect these.
DoT and Trai chairman Rahul Khullar did not respond to queries regarding the issue.
The changes are mostly procedural and not very significant, said a Mumbai-based analyst at a multinational brokerage who asked not to be identified because he is not authorized to speak to the media.
“These are mostly small issues that are unlikely to see any stakeholders object. Only if they object will the auction likely get delayed, otherwise the DoT can amend the NIA before the last date for receiving applications (15 January)."
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