The Telecom Regulatory Authority of India (TRAI), along with private operators, have objected to several clauses in the government’s draft tender for rolling out wireless broadband services in rural India, with support from the Universal Service Obligation (USO) Fund.
They have told the Department of Telecommunications (DoT) that reserving one of the two slots for Bharat Sanchar Nigam Limited (BSNL) was not advisable, as this will force all private operators to bid for just one slot.
Also, operators have said that the reservation for BSNL was not justified, as all mobile phone companies contribute 5 per cent of their revenues towards the USO Fund, which is used to support rural telephony.
It is believed that DoT may increase the number of slots to three to ensure that at least two private operators are selected for the project through the bidding process.
The other option being explored is to continue with two slots, both of which will be awarded only through a competitive bidding process.
Moreover, TRAI has also raised concerns over subsidising companies that obtained 3G and BWA spectrum in 2010, if selected for this project.
The regulator has pointed out that the mobile permits given to these companies already contained clauses mandating the rollout of services in rural India within a five-year timeframe.
Other clauses in the draft tender mentioned by TRAI and the private operators include restricting the bidding for this project to only those operators who have either 3G or BWA spectrum. While the draft states that all operators may be allowed to bid and the winners would also be permitted to offer wireless broadband services in unlicenced bands, operators have pointed out that this would lead to poor quality of services due to spectral interference.
Operators also want the final tender documents to allow Mobile Virtual Network Operators (MVNOs), where the winner can share both the spectrum and the network of existing players.
