Tata asks govt to delay 3G spectrum allocation

Tata Teleservices, which has won 3G spectrum licences in nine circles, has written to the government asking it to delay the allocations until the issue on usage of Chinese equipment is cleared.

Tata argues that those telecom companies which order equipment from non-Chinese vendors are getting quicker security clearances. This, the company feels, will give those companies a first mover advantage, while Tata's own launch plans will be delayed, leading to a commercial disadvantage.

"By permitting sourcing of equipment from particular vendors and not allowing others, it vitiates the principle of level-playing field and extends the advantage to a few successful 3G bidders for them to order their network upgrades. We would therefore request DoT to allow all ordering also to be agnostic of country of origin. We request Chinese equipment be allowed to be ordered at the same time when others are being permitted, so that a huge licence fee is not subjected to any disadvantage due to non-availability of upgrade ordering opportunity," Tata said in a letter to the Department of Telecommuncations (DoT).

The complaint comes in the light of network security concerns raised on Chinese equipment. This has been termed as an unofficial ban, as a security clearance needs to be obtained if a company were to order from China. Industry sources say the purchase orders of telecom equipment ordered from Chinese vendors are not being cleared by the government. Contracts worth as much as $700 million of Chinese equipment spread over six months are known to be frozen.

While the government has allowed self-certification of imported equipment by telecom operators against a bank guarantee given to the communications ministry, industry observers say this seems to work only for western suppliers.