Telecom companies (telcos) that won spectrum in the November auction will have to sign licence agreements, which will have a clause that allows the government to change the terms and conditions of the licence. However, the telcos will have no clue to what the government might change.
The Department of Telecommunication (DoT) has mooted this proposal as the licensing documentation need to be completed before January 18, when the validity of the existing licences of the successful bidders expire. However, the government would not be able to finalise the terms and conditions for the licences before this date. Hence the clause.
The DoT has sought certain clarifications from the new entrants based on their applications. Once the DoT receives applications in order, it will need to issue Letters of Intent (LOIs) with Unified Licence Access Services (ULAS) attached with LoI.
However, the terms and conditions of the ULAS is yet to be finalised as the authorities concerned would require more consultation and examination of the recommendations made by the Telecom Regulatory Authority of India (Trai) on this. Further, the DoT will have to refer back the revised ULAS document after incorporating Trai recommendations.
Trai has sent its recommendations on the ULAS terms on January 2, based on the ULAS documents prepared by the DoT.
The DoT has proposed that the government issue the ULAS in the present form with a rider that the terms and conditions shall be subject to the government’s decision on Trai recommendations.
