DoT to issue mobile licences, spectrum to nine companies by month-end

Mumbai: The government will issue new telecom licences to nine firms, which were given letters of intent (LoI), and follow it up with allocation of start-up spectrum for the roll-out of mobile services.

The nine firms that were issued letters of intent (LoI) for starting mobile services include new players like Unitech, Datacom, Tatas, Idea Cellular, Spice Telecom, S Tel and Shyam Telelink.

Telecom and IT minister A Raja is expected to sign licence agreements with all the LoI-holders over next two days, in a move that would fuel competition and bring about affordability in the cellular tariffs.

The bill, which was cleared by telecom secretary Siddarth Behura, has been sent to the minister for his approval, sources said.

Some companies have, meanwhile, approached telecom tribunal TDSAT and the Delhi high court to stall the process, although neither has stayed it.

The entry of 5-6 new all-India service providers would bring mobile tariffs down by at least 50 per cent within six months to one year of their starting services, according to the Department of Telecom (DoT).

Over the long run, telecom minister Raja expects mobile tariffs to come down to just 25 paise a minute for local calls.

The government hopes to accommodate all LoI-holders simultaneously in circles where spectrum was available.

Meanwhile, GSM operators have asked the government to limit frequency to new players to those allocated under first-come-first-serve basis decided by their application date.

The government, however, in unlikely to wait as neither the telecom tribunal TDSAT nor the Delhi high court have stayed the process to issue of telecom licences to the nine firms who have been issued LoIs.