Government announces guidelines for 3G auction, number portability

Mumbai: The government has announced fresh guidelines for the auction of radio spectrum for roll-out of next generation (3G) mobile service as also mobile number portability that would allow users to switch service providers.

Under the new guidelines, the government has fixed a Rs160 crore reserve price for auctioning a  2x5 MHz block radio frequency in category-A areas like Mumbai and Delhi. The reserve price will be Rs80 crore for category-B areas and Rs30 crore for category-C areas.

A total of 10 service providers, including foreign companies, would be allowed to offer new generation mobile services.

For implementing number portability, the government has divided the country into two zones, allowing portability within each zone – a formula being followed in mature telecom markets.

The 3G spectrum will be auctioned in 450 MHz band, 800 MHz and 1,900 MHz and the operators will be exempt from paying any annual fee in the first year of operation. They will, however, have to pay an annual spectrum charge of one per cent of AGR after a period of one year.

All service providers holding Unified Access Service Licence or are otherwise eligible for obtaining UASL as per DoT guidelines as of 14 December 2005 will be eligible to apply for 3G radio spectrum.

The applicant company shall have a minimum paid-up capital of Rs10 crore on the date of application. Foreign equity, which is subject to regulation, shall, however, not be less than 26 per cent, according to the guidelines.

For number portability, the guidelines have set a one time non-refundable entry fee of Rs1 crore for securing the service licence.

''No single company/legal persons/MNP licence applicant or MNP licensee company, either directly or indirectly, will have any equity in any of the telecom service provider and vice-versa," the guidelines said.