India not in favor of entry fee for 3G

By agencies   |   Wednesday, 18 May 2005, 19:30 IST
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NEW DELHI: The Communication and IT Minister, Dayanidhi Maran, has indicated that existing operators would not be asked to pay an entry fee for offering third generation (3G) services. Maran said that the Government would not take any step that would drive up the cost of telecom services. Maran said, “I believe that the revolution in Indian telecom has taken place because of low tariffs. Any decision the Government would take will keep in mind the low tariffs. We do not want to bring the next license raj, as any such move will only increase the tariffs and put the consumers at a disadvantage." Maran's views assume significance in the light of a letter written by the Tata group Chairman, Ratan Tata, who proposed an entry fee of Rs 150 billion for 3G spectrum. Tata had written to the Communication Ministry seeking an entry fee on the grounds that spectrum was a scarce national resource. Earlier, the TRAI had also recommended zero entry fee for offering 3G services. The TRAI's views have found support with all the telecom service providers including Tata Teleservices. The Association of Unified Telecom Services Providers of India (AUSPI), which also represents Tata's telecom services company, has come out in support of the proposal to allow free migration to 3G services. On another note, Maran said that some of the recommendations made by the telecom regulator were outside the given specific terms of reference. Though he did not elaborate, sources in the Communication Ministry said that Maran was referring to the TRAI's recommendation asking the Department of Telecom (DoT) to constitute a group of ministers to oversee the spectrum allocation to telecom players. Maran also said that the Wireless Planning Co-ordination (WPC) wing of the DoT was fully equipped to handle the spectrum issue efficiently. "WPC can handle it because it has experience of 50 years of without being controversial and has remained unbiased. It will engage in a dialogue with the industry before taking a decision."

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