In its recommendations to the Department of Telecommunications (DoT), the Telecom Commission has permitted operators holding 4G spectrum to offer voice services by paying an entry fee of Rs 16.58 billion.
Earlier, DoT established a committee to examine the issues related to the proposed unified licensing regime. If DoT approves of the Telecom Commission’s recommendations, players like Infotel Broadband, would benefit, as they would be able to offer voice services on a pan-India basis after paying the entry fee.
Infotel Broadband had won an internet service provider licence in 2010. At the time of issuing the licences, DoT had stated that the players would have to adhere to the licence terms and conditions while offering services. Since, an ISP licence did not cover voice services in its ambit Infotel Broadband could not offer these services. Therefore, Reliance Industries approached DoT to allow it to offer voice services as well.
However, the Telecom Commission’s recommendations have been opposed by the Association of Unified Telecom Service Providers of India (AUSPI). According to AUSPI, the move contradicts the government’s view that spectrum prices ought to be determined via a transparent mechanism. It further says that the recommendations pave the way for existing 4G spectrum holders to offer pan-India voice services by paying a “paltry incremental amount” of Rs 830 million per MHz. According to the industry body, this would benefit 4G players as the difference between the prices of 3G and 4G spectrum auctioned at the same time was substantial, at Rs 10.33 billion per MHz.
However, the Cellular Operators Association of India (COAI) has supported the recommendations, as it provides a level playing field to both GSM and CDMA players holding a broadband wireless access (BWA) licence. Further, COAI would not oppose these recommendations since BWA licence holders will also have to pay an entry fee of Rs 16.58 billion which is the same as paid by GSM operators for their 2G licences.
