Important DoT decisions likely this month

DoT planning to finalise the draft policy for M&A by July 31

July seems to have emerged as one of the most active months for the department of telecommunications (DoT).

A series of important decisions on key areas are expected to be finalised by month-end. Among these are the much-awaited mergers and acquisitions (M&A) policy, Unified Licencing regime, nationwide mobile number portability (MNP), policy on spectrum sharing and the one on pricing and allocation of spectrum (excluding auctions).

DoT had, in February last year, announced broad guidelines for M&A but detailed guidelines are yet to come. The initial guidelines had, in principle, okayed speedy approval to merger proposals if the market share of the combined entity was not more than 35 per cent. If between 35 per cent and 60 per cent, it was to seek advice from the Telecom Regulatory Authority of India (Trai). The sector is expected to see some deals once the government issues a clear M&A policy.

MNP
The long-awaited nationwide MNP might also become a reality soon. DoT has decided to draft a position paper evaluating the cost and benefits by July 20.

Nationwide MNP would enable mobile users to retain their numbers even if they relocate from one circle to another repeatedly. Last year, communications minister Kapil Sibal had said this would be a reality during the first quarter of 2013.

According to sector, just about one to two per cent of mobile users relocate and the move might not have much impact. The operators have said they’d need to spend about $60 crore to build the backbone for enabling it. Nationwide MNP and free national roaming were part of the National Telecom Policy 2012. For national roaming, Trai has already come out with price caps on roaming charges as a first step.

Unified licencing
DoT has already referred the Unified Licencing (UL) document to the law ministry for vetting, following Sibal’s approval on July 5. Related documents such as those on wireless operating licences and migration would be finalised by July 22. For UL phase-II, DoT is likely to make a reference to Trai by Monday.

Spectrum sharing, others
Another important area which needs clarity is the policy on sharing of spectrum. DoT has decided to draft a position paper on the contours of the policy, after studying international practices, by July 20.

By Monday, the policy on pricing and allocation of spectrum other than through auction would be finalised and a note for the Union cabinet would be ready by July 31, according to a recent discussion.

It will also make a reference to Trai on licencing and fee structures for the infrastructure providers (category I) Monday. The status paper on the implementation of preferential market access  should be ready by July 20.