The Department of Telecommunications (DoT) has modified its policy on 3G spectrum allocation for CDMA operators after the com munications minister, A. Raja, affirmed that CDMA players would have to bid for 3G radio frequencies in the 800 MHz band.

The Department of Telecommunications (DoT) has modified its policy on 3G spectrum allocation for CDMA operators after the communications minister, A. Raja, affirmed that CDMA players would have to bid for 3G radio frequencies in the 800 MHz band. Spectrum allocation will no longer be automatic and linked to subscriber bases as had been proposed earlier. DoT has also eased the merger rules by allowing successful 3G spectrum bidders to buy out existing 2G licence holders without waiting for three years, which was the earlier lock-in period before a shareholder could sell stake. The move will allow foreign players like AT&T, Emirates Telecommunications (Etisalat) and NTT DoCoMo to enter the Indian telecom space by acquiring stakes in companies offering 2G services. This way, 3G bidders paying the additional Rs 16.51 billion for a unified access service licence can also offer 2G services through a merger with existing licence holders.

Meanwhile, DoT is hoping to complete the spectrum auction process by October 2008, so that operators are ready to roll out 3G services by the end of the year at the earliest.