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Tuesday, October 23, 2007

No fresh telecom license norms for new applicants


The Department of Telecom is understood to have dropped the initial idea of framing fresh guidelines for the 575 new licence applications but will verify ownership, shareholding pattern and source of funding of these aspirants.
There would not be fresh guidelines for these hopefuls on any criteria including lock-in period, raising net worth and the like, official sources said, adding the existing norms in these aspects would be applicable to them.
If the policy is changed for new players, then existing players would have to be asked to apply again so that nobody feels that there is a non-level playing field. But this does not mean that company details, shareholding pattern, hidden information and funding sources would not be verified, the sources said.
However, sources said this cannot be music to new applicants as DoT was in no hurry to issue Letters of Intent as there is hardly an spectrum to give it to new, existing or cross-over players who are planning to offer both GSM/CDMA technology based mobile services.
Allocation of spectrum is subject to availability and this is written well in the current guidelines, sources said.
Telecom Minister A Raja had earlier said DoT would work out fresh guidelines for new applicants as considering the huge number of applications, there was a need to form new norms. However, after receiving applications, he had later said that norms could not be changed as it would put them to disadvantageous position.
The new applicants include a host of real estate players such as DLF, Unitech and Parsvnath Developers, besides foreign firms such as AT&T.