Govt Issues New Telecom Licenses

[@ksh@T 20]

NEW DELHI: The government on Wednesday started issuing telecom licenses to new players, beginning with Videocon-controlled Datacom Solutions, in a move that will spice up competition in the GSM mobile telephony space.

A total of 22 licenses would be given away today to three new players, including permits for 19 circles to Datacom, according to senior officials in the Department of Telecom.

Birla's Idea Cellular would get license for one circle in Punjab and Swan Telecom for the Delhi and Mumbai circles.

A total of 120 licenses would be distributed among nine companies, including Unitech, Spice, Shyam Telelink and others that were issued Letters of Intent on January 10, this year.

Asked when the exercise would be completed, officials said all agreements with the nine companies would be inked by this weekend.

Subsequently, these firms would have to apply for spectrum (radio frequency) separately to start rolling out network in their respective circles.

The entry of new players is bound to increase competition in the GSM mobile segment and tariffs may fall in the coming months. DoT has worked out that entry of 5-6 new players would result in fall in tariffs by at least 50 per cent from the current level.

Officials said Communications and IT Minister A Raja wants to, in fact, bring local mobile call tariffs to 25 paise a minute and domestic long-distance call rates to 50 paise. This will be possible only through increased competition.

Officials said Communications and IT Minister A Raja wants to, in fact, bring local mobile call tariffs to 25 paise a minute and domestic long-distance call rates to 50 paise. This will be possible only through increased competition.

that is what it should be

[Honest 836]

^^^

Thats a great news my dear friend.

We are eagerly waiting for reduction in Tariffs as soon as these new players starts providing services.

0.50 paise for a long distant call would be great.

Regards.