Hindujas, Datacom to wait till TRAI issues recommendations

Hindujas, Datacom to wait till TRAI issues recommendations

New Delhi: The entry of the Hindujas, Datacom and Moser Baer into the mobile telephony business would be delayed further as the Telecom Regulatory Authority of India (TRAI) has asked the government not to grant any new licences till it issues recommendations on spectrum allocation and pricing.

The TRAI has asked the department of telecom (DoT) to keep in abeyance the grant of new 2G (mobile) licences till the watchdog finalises its recommendations.

It has, however, said that only if the court grants, then the DoT could go ahead with issuing more licenses.

The regulator plans to bring out a comprehensive list of recommendations on issues such as capping the number of service providers, allocation and sharing of spectrum, and pricing of spectrum.

TRAI’s latest move is likely to seal for the time being the fate of 343 applications that have been submitted between 26 September and 1 October, 2007.

So far, the DoT has issued licenses on those applications which were submitted on or before 25 September, 2007. It has issued 122 licences which included real-estate and technology firms with no telecom experience. A total of 575 applications have been filed by 46 companies till 1 October, 2007.

Sufficient competition seems to be already in place and spectrum is a scarce resource, the government had said in a letter to TRAI recently, asking the regulator to revisit its earlier recommendations on no-cap policy.