EGoM clears initial spectrum allocation to Tata Teleservices for Delhi circle

Will get the initial of 4.4 MHz spectrum for the Delhi after the 2G spectrum auction next year

Tata Teleservices will now get the golden opportunity to establish operations in the lucrative Delhi circle, one of the biggest in terms of revenue.

The government has finally decided to allocate to Tata Teleservices the initial of 4.4 MHz spectrum for the Delhi telecom circle.

The Empowered Group of Ministers (EGoM) on telecom, in its meeting yesterday, has said that the operator should be allotted the initial 4.4 MHz spectrum for Delhi service area as the company has already paid the requisite fee in 2008.

However, Tata Teleservices will get the spectrum after the 2G spectrum auction next year, provided the quantum is available with the government after the auction.

Interestingly, Tata Teleservices would not need to pay anything extra as this would not be re-priced even prospectively.

The company has so far been unsuccessful to bag the start-up spectrum in Delhi telecom circle though it was armed with the letter of intent (LoI) from the telecom department, as well as favourable rulings from telecom tribunal TDSAT.

Last year, telecom Tribunal TDSAT has aksed the Department of Telecom (DoT) to allot 2G start-up spectrum of 4.4 MHz to Tata Teleservices. Tata Teleservices has also filed two petitions before TDSAT seeking additional spectrum of 1.8 Mhz before the proposed auction, and has sought initial spectrum of 4.4 Mhz in Delhi and across 39 districts in 9 telecom circles.

Tata Teleservices was the first among the dual technology operators to apply for GSM spectrum on October 19, 2007.

Other dual technology telecom players include Reliance Communications, HFCL and Shyam Telelink.

Tata Teleservices had been agitating with the government after it decided that additional airwaves should first be made available to new entrants, which have already been awarded start-up spectrum, to improve their operations.