Tuesday 17 January 2012

Trai Realse:entry fee of Rs 20 cr for a pan-India mobile permit

  • Tuesday 17 January 2012
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  • Telecoms regulator Trai has proposed that entry fee for a pan-India mobile permit be fixed at Rs 20 crore from Rs 1658 crore at present.

    But these permits will not be bundled with spectrum or airwaves, and companies that obtain them must buy radio frequencies by participating in auctions.

    Currently, a pan-India permit comes bundled with 4.4 MHz of start-up GSM spectrum or 2.5 MHz of CDMA airwaves in all the 22 regions. The regulator has also proposed that companies be allowed to apply for these permits at a state or district levels.

    The entry fee for state-level permit ranges from Rs 50 lakh to Rs 2 crore, while for a district licence, it is will be Rs 15 lakh, Trai said in its consultation paper released today.

    It has also sought the industry's comments on the new unified licensing regime.

    "Unified licence will be given without any spectrum. Licensee has to separately apply/bid for obtaining spectrum as per the prevailing policy," Trai said, while adding that the new licence will be technology neutral and companies can provide any form of communication service - mobile, landline, long-distance services, internet, satellite amongst others.

    Currently, telecom companies need separate licences for each type of service such as GSM, CDMA, 3G, broadband wireless (4G), internet, Direct-to-Home and radio amongst others.

    All existing rules under the current regime, including a foreign holding cap of 74%, resident Indians holding top positions and other security guidelines will apply to the new permits, Trai said.

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