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Trai Favours Open Bidding In Directory Enquiry Service Licence

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TRAI favours open bidding in directory enquiry service licence

19 Jun, 2008, 1832 hrs IST, PTI

NEW DELHI: TRAI on Thursday recommended that licences for providing National Integrated Directory Enquiry Service (NIDQS) for mobile and fixed line services should be given to companies through open bidding process.

The telecom regulator has suggested that initially two licences may be issued through open bidding process based on the eligibility criteria, keeping in mind competition, quality service and limitations of interconnections.

The eligibility criteria for NIDQS include experience of three years in Telecom network operations or IT Enabled Services (ITeS), minimum net worth of Rs 100 crore and FDI limit of 74 per cent.

A minimum reserve price of Rs 1 crore as One Time Entry Fee (OTEF) may be fixed for NIDQS licence, which would get determined in the open bidding process, TRAI said, adding that the licence fee for NIDQS to be 6 per cent of the Gross Revenue of NIDQS provider.

It said the NIDQS provider shall roll out the service in 11 service areas in the first year and in the remaining service areas in the second year. The operator has to give a performance bank guarantee of Rs 2.5 crore for two years. There should be a suitable financial bank guarantee which could initially be of Rs 1 crore.

The licence duration could initially be for a period 10 years, which could be renewed by another 10 years.

Customers can access the NIDQS through their access service providers.

At present BSNL provides directory enquiry service across the country for its customers.

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