Hindujas, Datacom to wait till TRAI issues recos

The entry of the Hindujas, Datacom and Moser Baer into the mobile telephony business would be delayed further as the TRAI has asked the government not to grant any new licences till it issues recommendation on spectrum allocation.

New Delhi: The entry of the Hindujas,
Datacom and Moser Baer into the mobile telephony business
would be delayed further as the TRAI has asked the government
not to grant any new licences till it issues recommendations
on spectrum allocation and pricing.

The Telecom Regulatory Authority of India has asked the
Department of Telecom to "keep in abeyance" the grant of new
2G (mobile) licences till the watchdog finalises its
recommendations.

It has, however, said that only if the court grants, then
the DoT could go ahead with issuing more licenses.
The regulator plans to bring out a comprehensive list of
recommendations on issues such as capping the number of
service providers, allocation and sharing of spectrum, and
pricing of spectrum.

TRAI`s latest move is likely to seal for the time being
the fate of 343 applications that have been submitted between
September 26 and October 1, 2007.

So far, the DoT has issued licenses on those applications
which were submitted on or before September 25, 2007. It has
issued 122 licences which included real-estate and technology
firms with no telecom experience. A total of 575 applications
have been filed by 46 companies till October 1, 2007.

"Sufficient competition seems to be already in place and
spectrum is a scarce resource," the government had said in a
letter to TRAI recently, asking the regulator to revisit its
earlier recommendations on no-cap policy.

Bureau Report