Trai begins process for auction, floats pre-consultation paper

The Telcom Regulatory Authority of India (Trai) on Friday issued a pre-consultation paper on allocation of 2G spectrum in 22 circles by auction, following the Supreme Court order yesterday to cancel the 122 licences issued in January 2008 and directive to it to frame new norms for grant of licence through auction.

Stakeholders could send their comments by February 15, Trai said in a statement. The telcom regulator said it had been directed by the Supreme Court “to make fresh recommendations for grant of licence and allocation of spectrum in 2G band in 22 service areas by auction, as was done for allocation of spectrum in 3G band”.

Spectrum of 450-540 MHz is expected to be released after the cancellation of licences in all 22 circles. On spectrum management and licensing framework, Trai had recommended on May 11, 2010, that all future licences should be unified licences and that spectrum be delinked from the licence.

The regulator said keeping the time-bound nature of exercise in view, no extension would be given for sending comments.

In its order yesterday, the Supreme Court said, “Within two months, Trai shall make fresh recommendations for grant of licence and allocation of spectrum in 2G band in 22 service areas by auction, as was done for allocation of spectrum in 3G band. The Central government shall consider the recommendations of Trai and take appropriate decision within next one month and fresh licences be granted by auction.”

The companies whose licences have been scrapped include Uninor (a joint venture between Norway’s Telenor and Unitech Group), Sistema Shyam (a joint venture between Russia’s Sistema and Shyam Telcom, which offer services under the MTS brand name), STel, Videocon, Idea Cellular, Tata Teleservices, Loop Telcom, Etisalat DB (a joint venture between UAE’s Etisalat and Swan Telcom).