Govt announces new telecom policy

Sunday, January 30, 2011

Govt announces new telecom policy : 2G: govt move on spectrum may increase tariffs

New Delhi: Now getting a licence doesn't mean you get spectrum anymore. This unlike during A Raja's regime when spectrum allocated was 4.4 Mhz with entitlement upto 6.2 Mhz.

Now mobile companies will have to pay as per market rates. 89 licences can be cancelled by Supreme Court where the matter is pending. Telecom sources say that number of service providers in a circle could be curtailed which could raise mobile charges.

The Central Government on Saturday finally acted on the 2G spectrum front with Telecom Minister Kapil Sibal announcing that spectrum will now be delinked from licensing and awarded on market-based pricing mechanism.

"We will delink licence from spectrum in the New Telecom Policy. The licence will be awarded on market-based pricing mechanism. TRAI (Telecom Regulatory Authority of India) will give recommendations on mechanism need to move towards a truly inclusive policy," said Sibal in New Delhi on Saturday.

Sibal announced that the Government has decided to provide adequate spectrum to the operators and is seeking a plan of action from the regulator (TRAI) on this.

While pointing out the telecom has been the fastest growing sector, Sibal claimed that the old telecom policy had achieved its objective while spelling out the contours of the new guidelines.

"Telecom is the fastest growing sector and we have achieved the objectives of the telecom policy. We are contemplating a new policy and we will be coming up with it sometime in 2011. We need directional shift from the old policy. The Government proposes to cancel some licences and new licences will be offered under the new policy. Licences issued will be in nature of unified service and licence holder is free to offer any service," he said.