Spectrum audit, merger reforms in new telecom policy
Wednesday, 13 April 2011, 01:43 IST
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Spectrum audit, merger reforms in new telecom policy
New Delhi: Communications Minister Kapil Sibal unveiled the broad framework of a new telecom policy which would bring in reforms such as audit of spectrum usage, de-linking of spectrum allocation and licences, and change of merger and acquisition guidelines, among others. 'We want regular audit and review of usage of spectrum by various agencies. We feel this is required. Which agency, whether it is going to be the CAG (Comptroller and Auditor General of India) or the TRAI (Telecom Regulatory Authority of India), we have not decided yet,' Sibal told reporters. 'All future licences should be unified licences and spectrum should be de-linked from licences,' he added while presenting the 100-day report on the progress of various measures announced in the beginning of the year. The minister said that a uniform licence fee across all service areas was needed, and added that how much the fee should be would be decided in due course. Existing roll-out obligations too will be modified as the department of telecom was finding it difficult to monitor the same, he pointed out. The terms for renewing licences will also be changed in the new policy. Companies seeking to renew their licences will have to apply 30 months before the current one expires 'so that there is enough time for us to deal with the applications, enough time for the licencee also to know what he is in for,' Sibal said. The licences will be renewed after 10 years, not 20 years. The minister also announced constitution of a committee, under the chairmanship of retired Supreme Court judge Shivraj Patil, to draft a 'spectrum act.' Sibal, who took over from the scam tainted Andimuthu Raja, had announced Jan 1 the overhaul of the existing telecom policies and promised a progress report on it in 100 days. The minister said that the guidelines for mergers and acquisitions needed to be changed to meet the needs of a dynamic sector like the telecom. 'Mergers and acquisition guidelines need to be liberalised. The number of competitors (post merger or acquisition) should not be allowed to fall below six,' said Sibal. Some of the key changes that are be part of the new telecom policy are: - All future licences should be unified licences, spectrum allocation to be de-linked from licence. - Spectrum usage will be audited regularly by an external auditor. - Four categories of licences to be put in place - unified licences, class licences, licensing through authorisation and broadcasting licences. - Two levels of unified licences, at the national level and at the service area level. - Merger and acquisition guidelines to be liberalised. However, post merger or acquisition, the number of players in any service area should not be below six. - Spectrum sharing to be controlled and permitted only under certain conditions. - Drafting committee to finalise a national spectrum act, which will deal with issues like allocation, and will be headed by Justice Shivraj Patil. - Companies will have to apply 30 months in advance to renew licences. - Renewed licence to be valid only for 10 years as against current 20 years.
Source: IANS
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