TRAI gears up for 2G allocation policy

Regulator set up a spectrum cell to look at 2G and 3G allocation policy and pricing

Bhaskar Hazarika

New Delhi, February 15: Auctions for third-generation (3G) spectrum may have delayed, but there could be hope for telcos waiting for allotment of 2G spectrum. Telecom Regulatory Authority of India (TRAI) is readying itself prior to the allocation of 3G and 2G spectrum by setting up a spectrum cell. The spectrum cell would facilitate recommendations for both 2G and 3G allocation policy.

Department of Telecom (DoT) had received 232 applications for Unified Access Service License (UASL) till September 25, 2007. Of the total 122 applicants have been Letters of Intent (LoI). Apart from existing telecom companies seeking for additional spectrum, new operators such as Sistema Shyam, Uninor and S Tel are in the queue to receive fresh spectrum in some of the selected circles.

This move comes after the regulator received mixed response from the telcos on allocation of additional 2G spectrum. The regulator is yet to take a call on auctioning of 2G spectrum.

A senior official from the ministry of communications and IT told Financial Chronicle that the spectrum cell would include experts dealing with spectrum allocation and auctions. “At present the spectrum cell has two people, one from TRAI and the other from Wireless Planning and Coordination (WPC). Additional number of experts are likely to join the cell, which will look at different aspects of spectrum allocation and pricing,” the official said.

He said that the spectrum cell has been created with the objective to look at the minute details on the auction of additional 2G spectrum. “There have been mixed views on the auction of 2G spectrum. The regulator is yet to decide if 2G spectrum should be auctioned to telcos, up and above the start up spectrum of 4.4 MHz or above 6.2 MHz. Also there have been discussions on the pricing of 2G, the expert committee will take a call on formulating the recommendations. It would also look in to sharing and trading of spectrum, cap on the number of service providers in a circle and merger and acquisition,” the official added.

The operators have been demanding early allocation of 2G spectrum, prior to the start of 3G auctions, which is scheduled to take place in September 2010. Telecom regulator is working to come up with a consultation paper on allocation of additional 2G spectrum.

WPC, wing under the Ministry of Communications and IT, is responsible for spectrum management. In a recent move WPC has written to the ministry for hiring experts for managing the 3G spectrum and WiMax auction processes. With 3G and WiMax spectrum auctions round the corner, WPC has sought for additional manpower to manage the auctions. With this initiative from the regulator in setting up the spectrum cell, it is unlikely that the government would grant additional manpower to WPC.

© Financial Chronicle