DoT unveils norms to select agency for 3G, WiMax bid

NEW DELHI: The department of telecom (DoT) on Friday issued a revised request for proposal (RFP) to select an e-auction agency that will conduct the online auctions for third generation radio frequencies in India.

All interested firms have been asked to submit their bids by September 25.

All firms bidding to be the agency to conduct the e-auction will also have to declare their shareholding pattern — both Indian and foreign (if any).

Besides, the DoT has said that potential bidders cannot have more than 10% stake in any telecom or internet service provider in India. The guidelines also add that only those companies who have a paid up capital of Rs 2.5 crore and a networth of at least Rs 10 crore and has conducted similar auctions before will be eligible to apply.

The DoT has said that the auctions of third generation radio frequencies for telcos will be held within three months of selecting the agency to conduct the same. This implies, if the agency in selected by October, the auctions must be conducted before January, 2009.

Following the first round of auctions, the agency will also have to conduct subsequent auctions as and when radio frequencies are available, the DoT added. All bidders must also quote their fee for conducting the entire auction process. The fee will be the per cent of the of the total revenues they raise from the auction.

“All applicants that meet the eligibility criteria will have to make a presentation before the evaluation committee demonstrating their experience and capacity to conduct the auction,” DoT said in a communication on its website.

The department of telecom (DoT) has started discussions on allowing telcos to share spectrum, the radio frequencies on which all mobile services operate.

In a meeting with the minister of state for communication and IT, Jyotiraditya Scindia, earlier this week, the DoT officials listed out the pros and cons of becoming the first country in the world to allow spectrum sharing.

In an internal note that was presented to Mr Scindia the DoT said that spectrum sharing would help telcos use radio frequencies in a ‘more economic and efficient manner’.

The note also adds that the sharing of radio frequencies between different operators would ‘boost transparency by revealing the true opportunity cost of the spectrum’ and would also make it ‘possible for companies to expand more quickly’ in addition to ‘making it easier for prospective new market entrants to acquire radio frequencies and launch operations’.

“Spectrum sharing can also be used to correct inefficiencies arising from the allocation of spectrum to different applicants, which can create artificial spectrum scarcity,” the note said.


Source : Economic Times