Guidelines to liberalise 2G spectrum issued

The government on Thursday issued guidelines to liberalise second generation (2G) spectrum through which operators will be able to offer latest services.

"Existing CMTS/UAS/UL with access service authorisation licensees may liberalise their entire administratively allotted spectrum holding in 800 Mhz and 1800 Mhz band in a service area for the balance validity period of right to use spectrum," it said.

The guideline is expected to somewhat relax the impasse between the government and the service providers over this issue.

"After the in-principle approval of the competent authority that the liberalisation of administratively allotted spectrum of the telecom service provider (TSP) is permitted subject to receipt of necessary payment, a demand note to the concerned TSP indicating the total amount payable payable and due date of payment and terms of payment will be issued by the department," the guidelines said.

The service providers will be required to make payment within 30 days from the date demand note is issued to them. Also interested operators can apply in writing with non-refundable fee of Rs.50,000.

The guidelines also sayu the spectrum will be required to be liberalised for the balance validity period of right to use the same after payment of auction determined price pro-rated for the period.

The entry fee will be pro-rated for the balance validity period of the right to use spectrum and will be deducted from the total amount to be paid by the service provider for liberalising the spectrum.

The guidelines also clarified that in case more than one set of auction determined prices are available, the latest auction determined for the respective frequency band as available at the time of calculation of charges or amount payable for liberalisation of spectrum, would be applied.