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Government calls operators to burry hatchet on spectrum allocation

Connectivity BusinessbyConnectivity Business
March 8, 2011
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Telecom minister Kapil Sibal has asked mobile phone operators to sort out their differences about spectrum allocation by the end of the month, according to local reports.
In the wake of the 2G scam, Sibal met with industry leaders to discuss regulatory…

Telecom minister Kapil Sibal has asked mobile phone operators to sort out their differences about spectrum allocation by the end of the month, according to local reports.

In the wake of the 2G scam, Sibal met with industry leaders to discuss regulatory changes and draft a new telecom policy. He was quoted saying that companies should work together to ensure the industry is robust.

The government has drafted a strategic plan for the telecoms sector that includes spectrum sharing, M&A and the introduction of MVNOs. The draft plan also involves the establishment of a committee to review the use of spectrum. Sibal set himself a 100-day deadline to announce the policy when he took office at the end of last year.

This comes as the Telecom Regulatory Authority of India (Trai) issued propositions about excess spectrum charges and spectrum prices. The next step will be for the Telecom Commission, a division of the Department of Telecommunications, to consider the proposals. Telecom minister Kapil Sibal was reported to tell TV audiences a few weeks ago that the changes seemed reasonable.

However, Bharti Airtel was quoted saying the proposed pricing “defies logic”, while Vodafone Essar said the proposals “are flawed, illogical, discriminatory” and that it “strongly disagrees” with a one-time bandwidth fee.

Tags: Bharti AirtelVodafone
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