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TMCNet: DoT sets up panels on 2G recommendations: Three committees to examine spectrum, licensing and finance ahead of formulation

[June 04, 2010]

DoT sets up panels on 2G recommendations: Three committees to examine spectrum, licensing and finance ahead of formulation

Jun 04, 2010 (Mint - McClatchy-Tribune Information Services via COMTEX) -- In a bid to complete the process of coming up with a new policy, the department of telecommunications (DoT) has broken up the regulator's recommendations on 2G spectrum management and overall licensing conditions into three parts.

DoT has set up three panels to examine the issues--spectrum, licensing conditions and finance--said two officials with knowledge of the matter.

"These three committees will submit their views to an overall committee on the policy, which will be set up at a later time once all the recommendations are in," a senior DoT official said on condition of anonymity.

Meanwhile, it's waiting for the Telecom Regulatory Authority of India (Trai) to complete its recommendations on two contentious issues--moving companies to 1,800Mhz from 900Mhz (which is cheaper to deploy) and the pricing of additional spectrum--before the telecom policy can be drafted.

On 19 May, a week after Trai submitted its proposals to DoT, the regulator's chairman J.S. Sarma asked telecom secretary P.J. Thomas to hold off on the final policy until it had completed its consultations on the two remaining issues. Trai's initial recommendations were heavily criticized by phone companies.

The regulator is holding consultations and has set 14 June as the last date to receive suggestions from stakeholders.

"I would accordingly suggest that government should await the recommendations of the authority on both these issues before taking any decision," Sarma said in his letter.

The DoT panel looking into the finance aspects, headed by Vijayalakshmy K. Gupta, member (finance) in DoT, is expected to come out with its views this week while the other committees will come out with their suggestions by the end of this month, said one of the DoT officials cited above.

The committee on spectrum is headed by wireless adviser Ashok Chandra, and the panel on licensing conditions is headed by A.K. Srivastava, deputy director general for access services.

"There was no indication in the (initial) Trai recommendations that there would be further consultations on the issues," said a Mumbai-based analyst with a multinational brokerage firm on condition of anonymity.

"The recommendations are extensive and the fact that they have started work means that they are taking it seriously," said Kunal Bajaj, director with Analysys Mason. "Given the length, it will take them quite a bit of time to complete the process." To see more of Mint, or to subscribe to the newspaper, go to http://www.livemint.com. Copyright (c) 2010, Mint, New Delhi Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

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