The Spectrum Tussle - Cdma V Gsm

[kesav 127]

Tata quits COAI; says lobby favours only few big, old players

NEW DELHI: Terming the functioning of COAI, a powerful lobby of GSM operators, as "undemocratic, biased, non-transparent and unethical",

Teleservices (TTSL) today resigned from the core membership of the association.

"We have found that COAI is not a transparent association and represents the views of only a few selected old players, as all powers/rights are vested in their hands," TTSL said in a letter to Rajan Mathews, Director General of COAI.

"By doing so, COAI along with these few older players, has become an obstacle in the growth of the Indian telecom industry," it added.

Mathews could not be contacted despite several attempts as his mobile phone was switched off.

The Cellular Operators Association of India (COAI) has older players like Bharti Airtel, Vodafone and Idea Cellular as its core members. Sanjay Kapoor, CEO of Bharti Airtel, was elected chairman of COAI last week.

"By doing so, COAI along with these few older players, has become an obstacle in the growth of the Indian telecom industry," it added.

Mathews could not be contacted despite several attempts as his mobile phone was switched off.

The Cellular Operators Association of India (COAI) has older players like Bharti Airtel, Vodafone and Idea Cellular as its core members. Sanjay Kapoor, CEO of Bharti Airtel, was elected chairman of COAI last week.

Tatas alleged that the COAI was focussed only on the "myopic growth of a few telecom operators", without being representative of all the members.

"TTSL does not wish to continue associating with an association which just doesn't seem to be able to work in a just and equitable manner. We, hereby, formally tender our resignation as core member of COAI," it said.

Tatas did not rule out initiating legal action against the lobby of GSM operators.

Last week, the COAI had barred TTSL, along with two other operators -- Loop Telecom and Etisalat -- from exercising their franchise as the companies had not paid "disputed" dues.

The company had, however, asserted that it had paid all its dues, though there were some disputed amounts. It said that the voting power was concentrated in the hands of three big operators and the other 8-10 members were virtually insignificant.

"Voting rights have been placed in the hands of a few key older players and these privileges are often abused by these players for their own advantage," TTSL said in the letter.

source:: http://economictimes.indiatimes.com/news/news-by-industry/telecom/Tatas-quits-COAI-says-lobby-favours-only-few-big-old-players/articleshow/6158595.cms

A very good move by TTSL.

:clap:

COAI is a cartel(read as Airtel,Vodafone & Idea) controlled association and its disintegration to void is an already known fact.

It's better for other operators like Aircel, Loop Telecom and Etisalat to quit as soon as possible rather than being bullied by Cartel.

Edited July 12, 2010 by kesav

[KanagaDeepan 1,084]

I want even Aircel to get out from COAI and join hands with RGsm and Docomo.. (Remember Docomo+RGsm+Aircel can form PAN-India 3G presence..)

[kesav 127]

2G fallout: Law ministry says CAG can't question govt on policy matters

The ministry of law and justice has said that the Comptroller and Auditor General (CAG) does not have powers to challenge policy decisions taken by the government. Minister for Communications and information technology A. Raja had sought the law ministry's opinion when the department of

telecommunications (DoT) found that the CAG had challenged some of its policy decisions in its "Draft Audit report on the issue of licence and allocation of 2G spectrum".

DoT maintains that issuing licences and 2G spectrum to new telecom operators on a first-come-first-served basis was a policy decision.

Citing National Telecom Policy 99 (NTP 99) and the Five Year Plan, DoT has pointed out that the government treats telecom as infrastructure sector.

The law ministry has opined that the CAG Act, 1971, does not provide the CAG powers to "question the wisdom of the policy/law makers as policy decisions may involve trial and error theory."

"CVC, CAG and other watchdogs no doubt play a significant role in any democracy but they being constitutional/statutory functionaries cannot exceed the role assigned to them under constitution/Law. Even the courts refrain to question wisdom of government in policy matters the policy decision is patently arbitrary, discriminatory or mala fide."

source :: http://www.hindustantimes.com/2G-fallout-Law-ministry-says-CAG-can-t-question-govt/Article1-590832.aspx

[kesav 127]

RCom may get additional GSM spectrum soon

NEW DELHI: In a development that could help Anil Ambani-led RCom get additional GSM frequency in most circles, including Delhi, the telecom ministry is likely to prioritize operators with start-up spectrum and the required subscriber base for the allocation of unutilised radio waves.

"... The GSM licencees who have received the initial start-up spectrum of 4.4 Mhz and meet the eligibility conditions for grant of additional spectrum up to 6.2 Mhz may be given top priority, as this is the assured quantum of spectrum as per the Licence Agreement and also their vested right," the legal advisor, department of telecom (DoT), has opined.

RCom, which was offering CDMA mobile services, was also allowed to offer GSM-based mobile services in 2007 after the government approved a dual technology policy.

The DoT recommendation, if accepted, could put some telecom players at a disadvantage, as they have been denied even start-up spectrum in several places.

Tata Teleservices, which was also given a dual technology licence to offer GSM-based services, is still waiting to get start-up spectrum in the most lucrative circle of Delhi and several other districts of various circles.

RCom officials confirmed that they have applied for additional GSM spectrum in most circles, including Delhi, as they crossed the required subscriber base last year itself.

As far as the Delhi service area is concerned, only 3.6 MHz of spectrum is available, which means that no operator will be able to secure the initial start-up spectrum of 4.4 MHz required to operate in the circle. Instead, the spectrum available in Delhi will be utilised as additional spectrum by players that already have start-up spectrum.

RCom was the only operator besides Swan Telecom to get start-up spectrum in Delhi in the latest round of distribution of new telecom and dual technology licences in January, 2008.

The Tatas have written to the DoT repeatedly that they should be given start-up spectrum in Delhi. The Tatas feel that start-up spectrum should be taken back from operators that have failed to start services even after being allocated GSM spectrum nearly 30 months ago.

According to sources, the DoT has received several applications from new operators as well as incumbents for the grant of additional spectrum based on their subscriber base, but no decision has been taken yet.

Telecom regulator TRAI, however, had recently recommended that operators with 6.2 MHz of spectrum should be considered first for allocation of additional spectrum, as they have already made an investment to roll-out their networks.

source :: http://timesofindia.indiatimes.com/business/india-business/RCom-may-get-additional-GSM-spectrum-soon-/articleshow/6676626.cms

[kesav 127]

PMO dials telecom dept for update on 2G wait-list

NEW DELHI: The telecom department’s failure to award additional second generation (2G) spectrum — the frequencies on which all mobile services are currently delivered — for close to two years, has drawn the attention of the Prime Minister’s Office (PMO), which has sought an update on this issue.

In early 2009, the Department of Telecom (DoT) had put on hold all allocations of additional airwaves to existing telecom companies, as it sought to come up with a new methodology to award these airwaves. But, a series of controversies including many operators expressing unhappiness over sector regulator Trai’s proposals for changing the current allocation policy, has resulted in the communications ministry being unable to finalise a new methodology to distribute these airwaves.

Meanwhile, over 100 applications from existing telcos are pending before the DoT for additional airwaves.

Spectrum is the lifeline of all mobile phone companies, and this crunch is the primary reason behind deteriorating quality of services and call drops in large cities and metros.

The PMO, in an October 5 communication to the telecom department that was reviewed by ET, has sought a ‘factual report’ on the 2G allocation process.

The Delhi circle, with 17 applications, has the maximum number of pending requests for 2G airwaves followed by Bihar with nine. If the current policy of awarding telcos additional airwaves subject to them reaching certain pre-defined subscriber targets is retained, Bharti Airtel then heads the queue in seven circles including Karnataka, Andhra Pradesh and Assam, followed by Vodafone in three circles including Mumbai and West Bengal, while Aircel and Idea Cellular have the first right to these airwaves in four and two circles, respectively.

Earlier this year, Trai proposed that the 4.4 MHz of start-up spectrum that new entrants hold be enhanced to 6.2 MHz for no additional cost, while adding that these players would be placed first in the priority for 2G spectrum allocation.

Next in line will be incumbents that currently hold less than 8 MHz. Their holding will be enhanced to the 8 MHz cap provided they me ET rollout obligations and pay the one-time fee.

Last in queue, will be new entrants like Tata DoCoMo and Uninor which are yet to receive start-up airwaves in many circles. As reported by ET earlier this week, the DoT had controversially attempted to reverse recommendations by sector regulator Trai and place new entrants like Tata DoCoMo and Uninor, that are yet to receive start-up airwaves in many circles, first in the queue; but was thwarted by its own legal advisor, which refused to endorse it.

Over the last couple of months, the PMO has taken an active interest in the running of the telecom ministry. In August, the PMO had asked communications and home ministries to review the strict new security standards that are being labelled “too tough” by foreign telecom gearmakers. Prior to that, the office of Manmohan Singh , in its response to the ongoing controversy over Trai’s recommendations linking the price of 2G spectrum to the recently-concluded 3G auction, had asked the DoT to refer this matter to an Empowered Group of Ministers (EGoM) headed by finance minister Pranab Mukherjee .

source :: http://economictimes.indiatimes.com/articleshow/6744925.cms

It has become a fashion in Indian Ministries(Particularly Telecom Ministry) to put the things on hold if going gets tougher.

Everybody knows that accepting TRAI's path-breaking pro-consumer recommendations and implementing is tough but that doesn't mean that you can put entire nation's telecom growth in pause mode for so long.

DoT has been finalizing these recommendations for last 6 months. It's too strange.......

DoT has shown similar foolishness as for as VoIP is concerned. TRAI has made recommendations quite long back(may be 2 years ago...) but still DoT is sleeping over it.

DoT is playing similar waiting game in terms of auctioning 3G CDMA frequencies. 3G GSM auctions are over and frequencies allocated and operators are starting their operations. Till date no clarity on when 3G CDMA frequencies will be auctioned or at least which band frequencies will be auctioned. Here most affected operator will be MTS because at least other CDMA operators have GSM 2G spectrum(due to which they participated in GSM 3G auction and acquired in some circles). Is it pentaly for taking a more spectrum efficient technology for their implementation? or Is it penalty for rolling-out the services in more circles than any other new entrants?

Waiting has become national disease as quoted by one of beloved forum member raccoon(link).

But unfortunately it looks like same disease has spread to TRAI. TRAI, one of the benchmark regulators in the world and the pivot around which our telecom industry spiralled to unbeleivable heights has started slipping recently.It commited to DoT to finalize 2 aspects regarding 2G spectrum. (1) Methodology for refarming 800 MHz and 900 MHz band (2) Method for calculating 'current price' of excess spectrum held by incumbents.I see no signs of activities on this front from the regulator.

Out of various agencies in the Indian Telecom industry, one and only one agency which people of India still trust and look for is TRAI. This reputation you've earned through your list of path breaking pro-consumer recommendations. Recently, you've been under paid vicious attack from anti-consumer cartels but that shouldn't stop you from moving forward. Never in the history of world, a regualtor has been praised by business houses for making pro-consumer policies. This you know better than any one of us here. keep going..........

Edited October 19, 2010 by kesav

[Karthik R 246]

completely agree with you. MTS stands to lose the most in case there is no auction of CDMA waves. But do you think this is going to happen?? Considering the STEP-MOTHERly treatment it have been receiving from Trai, it is highly unlikely

[kesav 127]

...............................................................................................

Waiting has become national disease as quoted by one of beloved forum member raccoon(link).

But unfortunately it looks like same disease has spread to TRAI. TRAI, one of the benchmark regulators in the world and the pivot around which our telecom industry spiralled to unbeleivable heights has started slipping recently.It commited to DoT to finalize 2 aspects regarding 2G spectrum. (1) Methodology for refarming 800 MHz and 900 MHz band (2) Method for calculating 'current price' of excess spectrum held by incumbents.I see no signs of activities on this front from the regulator.

Out of various agencies in the Indian Telecom industry, one and only one agency which people of India still trust and look for is TRAI. This reputation you've earned through your list of path breaking pro-consumer recommendations. Recently, you've been under paid vicious attack from anti-consumer cartels but that shouldn't stop you from moving forward. Never in the history of world, a regualtor has been praised by business houses for making pro-consumer policies. This you know better than any one of us here. keep going..........

As if answering to highlighted point (2) above, TRAI says 2G pricing norms by October-end

Telecom regulator TRAI said it would come out with guidelines on linking 2G spectrum prices with that of 3G airwaves by this month.

In May 2010, the Telecom Regulatory Authority of India (TRAI) had come up with recommendations that includes linking 2G spectrum prices with 3G rates.

After the recommendations faced severe opposition from the incumbent GSM players, TRAI had said it would study the issue (linking 2G 3G prices) and submit fresh proposals.

"We told government, that we will be apprising of our study in the next few days," TRAI Chairman J S Sarma said when asked if the regulatory body will come out with the 2G pricing norms by end of October.

TRAI's earlier recommendations included levying a one- time charge on operators holding excess 2G spectrum beyond 6.2 MHz. The regulator came up with this proposal after the auction for the third generation airwaves earlier this year fetched the government a whopping Rs 54,000 crore.

source :: http://www.indianexpress.com/news/trai-norms-on-linking-2g-spectrum-prices-with-3g-in-oct/699623/

:clap:

TRAI, what about refarming 800 MHz and 900 MHz band ????

Edited October 19, 2010 by kesav

[kesav 127]

DoCoMo expresses concern over govt’s spectrum allocation plan

Japan’s NTT DoCoMo, which has a joint venture initiative in India with local partner Tata Teleservices, has expressed concerns over state policies which prevent it from offering GSM cellular circles in the lucrative Delhi concession area.

The pair’s Tata DoCoMo venture holds concessions for 18 telecoms circles, but was not allocated spectrum in the Delhi circle. News agency PTI quotes NTT executive Mutsuo Yamamoto as saying: ‘NTT DoCoMo as an investor in India looks forward to fairness in terms of policy issues. For instance Tata DoCoMo should be given start-up spectrum of 4.4MHz in Delhi and 39 other key districts on a priority basis.’ Yamamoto added that the Indian authorities should look to allot airwaves to operators such as Tata DoCoMo – which do not even have start-up spectrum in some circles – before issuing additional spectrum to other players. The official’s second point is a direct response to concerns that the Indian government has reportedly framed policy which would give additional spectrum to those firms already holding spectrum, before any allotment of fresh spectrum to start-ups.

source :: http://www.telegeography.com/cu/article.php?article_id=34842&email=html

[kesav 127]

Tata Tele claims first right to 2G waves

Tata Teleservices Ltd (TTSL) has raised concerns against a proposal to allocate 2G spectrum first to those operators that already have 4.4 Mhz, on grounds that operators waiting for start-up spectrum in various circles should be the first to get it.

In a letter to the Communications and IT Minister, Tata Teleservices said that any move to give spectrum to those that already have 4.4 Mhz will favour a single company and would be discriminatory to others.

“Every telecom operator is supposed to get 4.4 Mhz of spectrum as minimum start-up spectrum yet Tata Teleservices has been waiting to receive its start up spectrum in Delhi and 39 key districts in 9 circles for more than two and half years,” the letter from TTSL stated. The proposal to give spectrum to those with 4.4 Mhz was first mooted by the Telecom Regulatory Authority of India on grounds that the licence agreement guarantees 6.2 Mhz of spectrum to every GSM operator and therefore the Government is duty bound to fulfil the commitment.

TRAI took the view that since operators with 4.4 Mhz will require additional spectrum for their growth, they should be given priority. This view has been upheld by the Department of Telecommunications' legal advisor. If this is accepted by the Government, then Reliance Communications will be the biggest gainer as it has been given 4.4 Mhz spectrum and is awaiting additional 1.8 Mhz.

However, operators like Tata Teleservices have not yet got any spectrum even though they have paid full entry fees to the Government.

source ::

[kesav 127]

Trai dials trouble for new telcos on services rollout

New Delhi: The nine new telecom operators who were granted licences in January 2008 could lose sleep over this. The Telecom Regulatory Authority of India (Trai) is planning to recommend to the government in the next few days to either levy penalty on these companies for not meeting their rollout obligations or cancel their licences if the case warrants.

“We are examining the rollout record of the new operators and going to recommend that penalty be levied as per the licence conditions on those failing to meet the rollout obligations. In cases where the three-year deadline is over, we would even recommend cancellation of the licences,” Trai chairman JS Sarma told FE.

Sarma said one of the important roles of the regulator was to ensure that the terms and conditions of the licence were met by all operators, and therefore it decided to look into the rollout record of new operators.

Once Trai submits its recommendations to the department of telecommunications (DoT), the latter would have to take a final call on the issue. However, the recommendation may put the DoT in a tight spot since telecom minister A Raja has talked about providing an exit route to the failed operators. This would mean that they surrender their licences and return the spectrum, and the government refunds them some portion of the licence fee. Raja had said the Telecom Commission would work out the modalities in this regard.

As reported by FE earlier, the rollout record of new operators is dismal. Out of the nine applicants who were granted licences in January 2008, only two have rolled out services, that too only in some of the circles for which they received the licence.

According to data submitted to Parliament by government as on January 2010, only two operators — Uninor and S Tel — had launched operations. Norway-based Telenor has a 67.25% stake in Uninor (earlier known as Unitech Wireless), which launched services in 8 out of the 22 circles. S Tel has launched services in three out of six circles.

This, when the new licensees are required to cover at least 10% of the district headquarters by the end of the first year of being granted licences. Under the licence conditions, DoT has the powers to imposed a fine of Rs 5 lakh a week for the first 13 weeks of delay, Rs 10 lakh for the next 13 weeks, and thereafter at the rate of Rs 20 lakh for delays up to 26 weeks. If any operator fails to fulfill the obligation even after 52 weeks of delay, the DoT has the power to cancel the licence.

Some companies claim to have made launches after January 10, 2010. Loop Telecom, which holds licences for 21 circles, claims to have launched services in five, Videocon Telecommunications also claims to have launched in five, and the biggest surprise, Etisalat DB (formerly Swan), which till January 2010 is shown as not having started services in any of its 15 circles, claims to have made launches in all....

source :: http://www.financialexpress.com/news/Trai-dials-trouble-for-new-telcos-on-services-rollout/704121/

Hope we can get back some spectrum through cancellation of licences....

[kesav 127]

Delay in 2G pricing Trai's fault, not ours, DoT tells PMO

The Department of Telecommunications (DoT) says it has been unable to decide on the pricing of second-generation (2G) spectrum due to dallying by the Telecom Regulatory Authority of India (Trai).

The Prime Minister’s Office (PMO) had asked DoT what had happened to Trai’s recommendations on the subject. DoT has told the PMO the first set of recommendations from Trai came on May 11, after which the sector regulator asked it to await some more recommendations on spectrum pricing and refarming. Which, complains DoT, are yet to come.

Trai says it is in the process of taking expert advice to work out the 2G spectrum pricing formula. It had, in May, suggested linking the 2G spectrum price with the price discovered through auction of 3G spectrum. It also recommended refarming of the 900 Mhz spectrum (held by market leaders Bharti Airtel and Vodafone Essar, among others). Trai also suggested the operators be made to pay market rates for spectrum when their licences become due for a 10-year renewal from 2014.

The recommendations were severely criticised by existing telecom service providers. The linking of 2G spectrum with the 3G auction price had started a controversy: the opposing view was that 2G prices could not be linked with those of 3G, since these were different technologies, with 3G thrice as efficient.

DoT, subsequently, set up a committee chaired by the member (technology), Telecom Commission, the highest policy-making body of DoT, to deliberate on the recommendations. But the committee is waiting for Trai’s further views.

source :: http://sify.com/finance/delay-in-2g-pricing-trai-s-fault-not-ours-dot-tells-pmo-news-news-kldba0dhchf.html

[kesav 127]

TATA to get spectrum in Delhi

New Delhi: The department of telecommunications (DoT) is planning to allot the start-up spectrum of 4.4 Mhz to Tata Teleservices Ltd and and Datacom (now Videocon Telecom) and 2.8 Mhz to Uninor in Delhi as the defence services have vacated 10 Mhz of spectrum.

If any such moves finally materialises it would be in contradiction to the Telecom Disputes Settlement and Appellate Tribunals (TDSAT) order which had put any further allotment of spectrum on hold until a government policy was formulated on it.

Meanwhile, the Trai which made its set of recommendations to the DoT on 2G spectrum in May had clearly said that cases such as TTSL would be the last in queue for allottment of spectrum as the ones who already possess 4.4 Mhz of spectrum would be given the priority for further allocation. The regulators recommendations are yet to be ratified by the empowered group of ministers which is supposed to take the final call on the matter.

However, the assistant wireless advisor, M Revathi has in a note moved on November 11 has cited the dual technology clause as the reason for granting spectrum to Tata Teleservices Ltd.

The Cellular Operators Association of India filed a petition in TDSAT challenging the government decision on various issues including permitting dual technology by the government. After hearing in the matter, TDSAT upheld the government decision of permitting dual technology, the note has said.

The note further says, Although the TDSAT judgement was received in March 2009, the allotment of initial spectrum to TTSL in the Delhi service area could not be processed in the absence of sufficient spectrum. Since defence has released 10 Mhz spectrum recently and out of which 8 Mhz is available for allotments, we may allot initial 4.4 Mhz to TTSL in Delhi service area as per the TDSAT judgement.

source :: http://www.financialexpress.com/news/Raja-had-planned-to-grant-more-2G-spectrum/712752/

TATA gets preference due to dual-tech license which it holds....

Good news for Delhi people since they can enjoy TATA Docomo...

Edited November 18, 2010 by kesav

[KanagaDeepan 1,084]

Nice to hear.. Now Delhi people can also enjoy lower tariffs (1p/2sec)... Main advantage is existing TataDocomo users (like me) need not burn their purse, while roaming to NewDelhi, in coming days...

[KumaarShah 143]

New Delhi: In a swift action against new telecom players who were given licences in 2008, telecom regulator TRAI today asked government to cancel 62 licences given to five companies including Etisalat (Swan), Uninor and Videocon.

As per the TRAI report, cancellation has been sought for licence in 15 circles given to Etisalat, a company earlier known as Swan that CAG had dubbed as a front company of Anil Ambani group.

Besides, licences to Unitech group's Uninor in eight circles, 10 to Sistema-Shyam, a joint venture between Russia's Sistema and India's Shyam group, 10 to Videocon, which Venugopal Dhoot-led group acquired from Mahendra Nahta's Datacom, and 19 of Loop.

As per licencing conditions, the licencees were required to roll out the services in 90% of service areas in metros and 10% in district headquarters within 12 months of the date of award of licences.

The action comes amid the Comptroller and Auditor General slamming the Telecom Ministry for irregularity and impropriety in giving licences to new players in 2008, causing a loss of a whopping Rs. 1.76 lakh crore to the exchequer.

According to the report of the Comptroller and Auditor General, though these new operators obtained the initial 4.4 Mhz spectrum in 81 service areas during the period April 2008 to January 2009, none of them had rolled out their services as per the provision of Unified Access Licences in any service area till December 31.

The CAG report also raises questions on 85 of the 122 licenses that were given out, saying either the documents given were not proper or the information provided could not be verified.

This action by TRAI also coincides with the Supreme Court hearing into the allocation of 2G spectrum in 2008 at 2001 prices. (With PTI inputs)

Source: http://www.ndtv.com/...News+-+India%29

Now will all the above companies knock the court's doors?

Edited November 18, 2010 by KumaarShah

[kesav 127]

The below is the much clear and correct reporting on the same topic.

Cancel 69 licences of 6 operators: TRAI

Two days after the Comptroller and Auditor General (CAG) report on 2G spectrum allocation highlighted the non-fulfilment of rollout obligations by new telecom operators, the Telecom Regulatory Authority of India (TRAI) on Thursday recommended cancellation of 69 licences of six operators, including five new ones, who have been sitting on spectrum and failed to provide services in telecom circles allotted to them.

The telecom companies under the scanner are – Etisalat DB (earlier Swan) that has failed to roll out services in 15 telecom circles, Videocon Communications (earlier Datacom Solutions) in 10 circles, Uninor (Unitech Group) in 8 circles, Loop Telecom (earlier Shipping Stop Dot Com) in 20 circles, Sistema-Shyam in 11 circles and Aircel in 5 circles.

As per the conditions of licence, the licensees are required to roll out the services in 90 per cent service area in Metros telecom circles and 10 per cent district headquarters in other service areas within 12 months of the date of award of licences.

TRAI, which had earlier recommended penalty for non-compliance of roll out obligations, said this amount could run into several thousands of crores. “So, we had suggested that these licences should be cancelled. This would vacate enormous amount of spectrum and this can be given to companies that are serious about meeting the schedule,” it said.

Significantly, the CAG report had found that “though these 6 new operators obtained the initial spectrum in 81 service areas during the period April 2008 to January 2009, none of them had rolled out their services as per the provisions of the licences in any service area till December 31, 2009.” Since there were many existing telecom UAS Licensees in dire need of this scarce natural resource, it resulted effectively into hoarding of the finite natural resources of the Nation by these operators.

The CAG report had indicted Department of Telecommunications saying that it failed to recover liquated damages and penalty of Rs.679 crore from these 6 operators for inordinate delay in the rolling out their services till December 31, 2009. “Since there were many existing telecom licensees in dire need of this scarce natural resource, it resulted effectively into hoarding of the finite natural resources of the nation by these operators,” it observed.

When contacted, Minister of State for Communications and IT Sachin Pilot told The Hindu: “The TRAI recommendations have been submitted to the government…we will study and review. We will come out with a view that takes the policy forward and helps in the growth of the sector.” Stating that it was premature to say what action would be taken against erring operators, he said: “The government's job is to provide stable regulatory environment that is transparent and equitable which instils confidence in investors in India as well as abroad.”

Meanwhile, two operators – Uninor and Sistema-Shyam – claimed that they have complied with the network roll-out obligations and so far not received any notice from either the government or TRAI. “Amongst the new telecom operators, Sistema Shyam TeleServices Ltd (SSTL) was the first company to launch its services. The company has complied with all its rollout obligations in all the 22 telecom circles,” SSTL said in a statement.

source :: http://www.thehindu.com/news/national/article893943.ece?homepage=true

[kesav 127]

Govt plans to recover market value of spectrum from new entrants

The 2G spectrum issue is headed for another turn as the government now plans to recover market value of spectrum from the beneficiaries rather than cancelling the grant of licences altogether.

Sources in DoT say that the government is considering to recover such a price from all the players who have benefited because of the alleged 2G spectrum scam.

In the year 2007 then telecom minister A Raja had granted licence and spectrum on first-come-first-served basis. The recently published CAG report has estimated the loss due to such a move at over Rs. 170,000 crore.

The government’s plan to recover value from such players seems to be to atleast reduce the loss as far as possible.

source :: http://telecomtiger.com/PolicyNRegulation_fullstory.aspx?passfrom=topweekendstory&section=S174&storyid=10290

If this idea ia actually contemplated in the corridors of power, then it's a stupid move.

Applying new regulations retrospectively will not stand in the court of law.

The argument that there's loss to the Govt. should be weighed against the factual value how much customer has saved due to such moves(increased competition due to new players).

It has to be weighed against how many new citizens have tasted the fruits of telecom due to the such moves(service afforability for ultra poor people due to new players).

Even the money saved by citizen is money gained for the country.

Edited November 20, 2010 by kesav

[Karthik R 246]

I am thinking on the same lines. The damage is already done and the people with tainted hands at the end of day should be brought before law. But if the Govt. proposes to punish the new entrants by slapping them with bills for the spectrum held, such a move will deter foreign investment and ultimately the flourishing telecom sector will suffer.

[KanagaDeepan 1,084]

I think it is too-much-foolishness to assume 2G spectrum cost as almost equal to that of 3G-spectrum cost.. We have to remember that, only few slots of 3G-waves are freed by defense and hence these much competition was found in its auction.. The efficiency of 3G, also attributes to its high cost to some extend.. Further the operators can get their money back faster in 3G, due to its various applications & VAS possibilities..

So no need to harass the new players for getting 2G spectrum for cheap.. They are already suffering a lot, to fight the old biggies due to the 1800MHz 2G waves allotted to them.. But if govt is very strong in getting some money again from new players, then atleast they should go for immediate spectrum-re_framing (to those who have satisfied the minimum roll-out conditions).. Then only a level playing field can be maintained, imho..

[kesav 127]

Everything was going fine till CAG submitted its report.

CAG is correct in saying that there's revenue loss(although calibrated value is totally unrealistic). As an auditor it's their responsibility to higlight the missed revenue streams in govt. departments.

It's not in CAG's purview to decide whether missing that revenue stream is correct or not except for financial angle.

It's duty of the PAC(Public Accounts Committee) to review the report and submit it to the parliament where it has to be debated against the sociological benefits country has received by losing that particular revenue stream.

It's unfortunate that India having filled with such intellectually-challenged and useless opposition parties, whole genuine process of review by PAC and further submission to parliament has been unnecesarily halted and democracy is in grinding halt for last 10 days.

It's total shame on opposition to ask for JPC which if constituted will bypass PAC(which in itself is a parliamentary committee)...........

Let us hope Govt. will stand strong and dismiss opposition's JPC request. Otherwise, it'll set a very bad precedent of bypassing all constitutional setups like PAC and other subcommittees of parliament......

Edited November 20, 2010 by kesav

[Karthik R 246]

Telenor finds no irregularity with India licences

OSLO, Nov 20 (Reuters) - Norway's Telenor (TEL.OL) denied on Saturday that its Indian subsidiary Uninor had won mobile phone licences in an irregular manner, the Norwegian news agency NTB reported.

India's telecoms regulator has called for 38 mobile licences, including some held by Uninor, to be cancelled amid a political scandal that is shaking the government of Prime Minister Manmohan Singh. [iD:nSGE6AI0EV]

The regulator said on Thursday that the licences were awarded too cheaply, and may have cost India a potential $31 billion. The accusations have led to the sacking of Telecoms Minister Andimuthu Raja.

"We have now investigated how our licences were awarded and have not found any irregularities," Telenor spokesman Glenn Mandelid told NTB.

Telenor had not yet established itself on the Indian mobile market when the licences were awarded in 2008. Later that year it bought stakes in local firm Unitech, which was awarded the permits. That firm is today called Uninor.

Mandelid said the award system in 2008 was not the same as today's. "Indian authorities feared the telecoms market would turn into a monopoly so they operated under a 'first come first served' principle," he said.

"The award system was the same from 2000 to 2008 when Unitech got its licence. Since then they have gone over to an auction system."

Telenor has about 13.5 million customers in the country's highly competitive mobile market.

It has praised its strong market development in the third quarter but said its Indian operations would post and EBITDA (earnings before interest, tax, depreciation and amortisation) loss of 4.5 billion crowns ($775 million) in 2010.

Source : Reuters

[kesav 127]

DoT to hold field survey on rollout obligations of new telcos

Armed with regulator Trai's recommendations to cancel 69 new licences for missing rollout schedule, the Telecom Ministry has asked its internal wing to conduct field survey in cases of each operator before issuing a show cause notices to them.

According to official sources, the Department of Telecommunications (DoT) has asked its Telecom Enforcement Resource Monitoring (TERM) cell to collect data after conducting field surveys in case of each operator and submit the report.

This, the officials said, is done by the DoT on its own from time to time to ensure that rollout of services took place as per licence terms and conditions for effective utilisation of the spectrum.

Trai had last week submitted suo moto recommendations asking the government to cancel 69 new licences of five operators, including Etisalat, Uninor and Videocon, issued in January 2008 by former Telecom Minister A Raja as these licensees have failed to roll out services at all or for improper launch of services.

Asked whether DoT may initiate action to cancel the licences, officials said cancellation may not be a viable solution as this would cause hardship to customers and new Telecom Minister Kapil Sibal may decide on the matter soon.

The regulator had recommended that licences be cancelled in at least 15 circles given to Etisalat, a company earlier known as Swan that CAG had dubbed as a front company of Anil Ambani group, and 10 circles given to Sistema-Shyam.

Sistema-Shyam, a JV between Shyam group and Russian giant Sistema, has claimed that they have rolled out services in all 22 circles and has over 7 million subscribers in its kitty.

Similarly, Uninor, a JV between Unitech and Telenor of Norway, has rolled out services in 12 circles and was in process to start services in others.

Trai, which had recommended penalty for non-compliance with the rollout obligations, said that this amount could be huge. "So, we had suggested that these licences should be cancelled. This would vacate enormous amount of spectrum (radio waves) and this can be given to companies that are serious about meeting the schedule," Trai report has said.

As per the conditions of licence, the licensees are required to roll out the services in 90 per cent service areas in metros and 10 per cent district headquarters in other service areas within 12 months of the date of award of licences.

source :: http://www.business-standard.com/india/news/dot-to-hold-field-surveyrollout-obligationsnew-telcos/116671/on

[kesav 127]

Supreme Court displeased by media reporting in 2G spectrum case

The Supreme Court today expressed displeasure over the "distorted" reporting in a section of media relating to the second generation mobile telephony allocation spectrum scam and regretted that Prime Minster Manmohan Singh's name was unnecessarily dragged.

"The prime minister's role is being dragged unnecessarily. Everyone has his reputation," a bench of Justice GS Singhvi and Justice AK Ganguly observed.

"The media is not supposed to misrepresent the court proceedings. The name of the highest authority is being dragged," the bench said, while maintaining that it respected freedom of the press.

"We know that the print and electronic media play an important role in the society. They are to inform but distortions about the fact would not serve the purpose. However, what is going on is very unfortunate," Justice Singhvi heading the bench observed.

The apex court also referred to the cliches like "SC slams government." "We wonder what is the meaning of slam," the bench queried amidst laughter in the court hall.

Interestingly, senior counsel KK Venugopal appearing for the CBI and AR Andhyarujna for former telecom minister A Raja also complained that the media was conducting a parallel trial causing prejudice to the accused.

"Nobody is an accused, "Justice Singhvi snapped at the submission.

Venugopal also complained that the counsel appearing in the matter was going to the media and briefing them about a subjudice case.

source :: http://www.dnaindia.com/india/report_supreme-court-displeased-by-media-reporting-in-2g-spectrum-case_1470514

Can we say now, SC slams greedy media.

Edited November 22, 2010 by kesav

[kesav 127]

Congress core group meets against backdrop of Parliament stalemate

A meeting of Congress core group was held today against the backdrop of continuing stalemate involving the government and the opposition in Parliament over the demand of a joint parliamentary committee (JPC) probe into secpnd generation mobile spectrum allocations.

Finance minister Pranab Mukherjee, who earlier in the day held a second all-party luncheon meeting with the opposition leaders over the issue, briefed the top party leadership about the discussions.

The core group is chaired by Congress president Sonia Gandhi in which Prime Minister Manmohan Singh, Pranab Mukherjee, home minister P Chidambaram and defence minister AK Antony are members. Sources meanwhile say the government "is not yet keen" for a JPC.

At the All India Congress Committee (AICC) briefing, Congress spokesperson Jayanthi Natarajan said the party is in faovur of Public Accounts Committee looking into the matter, though a senior Congress leader also said, "the situation is evolving" when asked whether the party is determined not to allow JPC.

However, options before the government are limited with the opposition refusing to accept anything less than such a probe and even some of UPA allies favouring it so that Parliament can be run.

At an all-party meeting called by Mukherjee to end the deadlock in Parliament, the opposition unitedly pressed for JPC and rejected government's proposal for attaching a five-member multi-disciplinary probe team with the Public Accounts Committee to go into the CAG report.

As the hour-long meeting remained deadlocked, Mukherjee told the opposition parties that he would get back to them after consulting Prime Minister Manmohan Singh.

Later, senior government sources dropped enough hints that the demand for JPC could be considered. They said that JPC is always agreed to "reluctantly" and even when accepted, it "does not mean defeat" of the government.

"We have to see that the Parliament runs," a source said.

Even at the meeting, Mukherjee told the leaders of various parties that "though the government was not convinced about the need for a JPC probe, if at all it agrees, it would only give in to the opposition demand."

Catching on this, leader of opposition in Lok Sabha Sushma Swaraj said that whichever government has in the past accepted a JPC has only "given in" to the demand. "Why don't you give up and give in to our demand," she told Mukherjee.

He laughed it off saying that since Swaraj was a lawyer, she had caught him.

In the all-party meeting, while the opposition parties closed ranks on the issue seeking JPC in one voice, even some key allies of the UPA — Trinamool Congress, NCP and DMK whose leader A Raja was forced to resign as telecom minister seemed to be not averse to the JPC as they said the government had the responsibility of running Parliament.

NDA convenor and JD-U chief Sharad Yadav, who attended the all-party meeting, told PTI, "Now even their allies have come in support such a probe, what is the government's problem in accepting JPC".

source :: http://www.dnaindia.com/india/report_congress-core-group-meets-against-backdrop-of-parliament-stalemate_1470498

Appointment of JPC at this stage is criminal.

Running parliament is not the exclusive duty of the incumbent Govt. It is shared responsibility of all the parties in the parliament.

Bypassing the established parliamentary committee's job for whims of few opposition leaders' ego is not moralistic.

What purpose JPC can serve at this stage when everything (SC hearing, CBI enquiry, PAC review on CAG report) is pending?????

Establishing JPC at this stage only creates a parallel investigation and it only signals how bad we treat the established constitutional institutions' functions.

For heaven sake, please allow PAC do its job. Let us allow every constitutional institutions (SC,CBI, PAC etc.,) to complete their assigned tasks.

If opposition is not satisfied at the end of all these things, then we can setup JPC.

This will ensure following things.

(1) It will ensure credibility for the existence of constitutional institutions and parliamentary committees signaling their job will never be bypassed and their reports are treated to the level what our founding fathers wanted it to be treated at

(2) If JPC established at the end of all institutions' functions, JPC will have all data at its disposal and can complete its job in time bound manner

(3) If JPC started at the end of all institutions' functions, it can effectively judge which institutions have done their job to perfection so that they can appreciate those institutions and propose remedial actions on the institions which floundered

(4) Parliament can do its normal job without wasting time on this issue and it can interfere meaningfully only when all the established institutions have completed their job and complete data available with chair persons.

So I pray and beg to opposition parties as a citizen of India, please allow all institutions(inc. PAC) to function normally but in the same breath I request you to keep up the pressure on these institutions to complete its job in the quickest possible time.

Please don't bypass institutional functions since it'll only damage the enthusiasm in those institutions if they come to know there's parallel over-powering investiagtion is going-on.

It's important at this point of time in the history for India to show to the world that each constitutional institution in the country can't be bypassed and its work is treated with utmost respect by none other than the parliament of the country.

Let us not spoil our democracy for only to hold our egos high......

Edited November 23, 2010 by kesav

[kesav 127]

Opposition can't dictate terms: Congress

The Congress on Tuesday criticised the Opposition for disrupting Parliament by sticking to its demand for a joint parliamentary committee (JPC) probe into the 2G spectrum allocation, saying the Opposition did not have the mandate to force the government to do what it wanted.

The government, the Congress said, had the mandate to rule the country. The Opposition has the right to express its views. They can raise people's issues and problems. But they do not have the mandate to force the government to do what they want. The people have not given the mandate to the Opposition for it, party spokesman Shakeel Ahmed told journalists here.

As for the continued impasse in Parliament, he said: The government's stand is the party's stand. The party believes that there is no need for a JPC probe, as the matter is being looked into by the Public Accounts Committee, which is also a constitutional parliamentary committee.

We do not want to devalue an existing constitutional arrangement by creating another mechanism. The government is also ready to discuss any matter at length in Parliament, he said. By stalling the Parliament proceedings, the Opposition was only acting against people's aspirations. The Treasury Benches and the Opposition must ensure that Parliament ran smoothly.

The standoff in Parliament continued for the eighth day, with the Opposition creating a pandemonium in both Houses, leading to their adjournment.

Sources in the Congress said the government was ready for a debate in Parliament under Rule 184, or even under Rule 193 as long as the Opposition did not insist on a JPC probe.

source :: http://www.thehindu.com/news/national/article907723.ece

A great move by Govt.

Opposition is exhibiting political unholiness in the shrine(parliament) of democracy.

This attitude has to nipped in the bud.

Govt. is not elected to be run according to opposition but according to people of the country.

What people of the country wants is proper functioning of all the constitutional institutions(CBI, ED, SC, PAC) including the parliament.

Opposition is stopping the function of one institution(parliament) to establish a parallel power center(JPC) which will devalue other established institutions' functions.

Bypassing institutions should not be allowed to become character of our democracy. If allowed this virus will spread across and the people working in different institutions will always work under dilemma on whether their work will be valued at all.

India should and must become process driven democracy.

Govt. has its mandate to show to the people that none of the steps in any process will ever be skipped for whims of certain influential politicians.

Edited November 23, 2010 by kesav

[Honest 836]

Spectrum case is mother of all scams: Supreme Court

NEW DELHI: Given the enormity of the amount involved, the scandal related to spectrum allocation to mobile companies was the mother of all scams, the Supreme Court said Wednesday.

"This scam will put to shame all other scams put together," said the apex court bench of Justice G.S. Singhvi and Justice A.K. Ganguly.

The apex court made this observation when senior counsel K.K. Venugopal, appearing for the Central Bureau of Investigation (CBI), was citing various judgments of the apex court dealing with various scams.

Venugopal sought to make a distinction between earlier scams and the spectrum scam saying that the investigating agency in this matter was probing the matter with expedition, efficiency and alacrity.

In the instant case the court is hearing a petition by the Centre for Public Interest Litigation (CPIL) seeking court monitoring of the CBI investigation into the spectrum scandal.

The hearing will continue Thursday.

Courtesy : The Economic Times