Thaindian News

New Delhi, Jan 29(ANI): Overhauling the existing system of license distribution in the national telecom sector, the Central government on Saturday unveiled a new policy to rectify the anomalies exposed in the multi-billion dollar 2G telecom spectrum allocation scam.

Deeming it a ‘directional shift’ from the previous dispensation, Union Telecom Minister Kapil Sibal said that the newly framed policy would de-link spectrum allocation from licensing.

“We think that there needs to be a directional shift away from the old policy. Previously, the license was bundled with the spectrum. We are going to de-link license from the spectrum in the new dispensation. Henceforth, spectrum would be awarded apart from de-linking, on a market-based pricing mechanism,” Sibal said.

Revealing the nuances of the new policy, Sibal asserted that though adequate spectrum would be granted to operators, the requirements of sensitive sectors such as defence would also be taken into account in the allocation of licenses.

“We must also ensure there is adequate spectrum to go around. We have also decided to provide adequate spectrum to the operators. We would be seeking a plan of action from the regulator on this regard very soon,” Sibal said.

“The entire requirement of the entire telecom sector would be seen, and how that spectrum is to be obtained would be looked at with due regard to the sensitive sectors, like defence and others,” he added.

The new policy would balance cheap tariffs, operator profitability and government revenue, while maintaining spectrum would not be contractual in nature as per the new policy.

“Now the license that will be issued to the telecom operators will be in the nature of a unified license. The license-holder would be free to offer any of the multifarious telecom services,” the Telecom Minister said.

“If the license wants to offer wireless service, he will have to go through a market-driven process, no contractual spectrum anymore, no concept of additional or startup spectrum anymore,” he added.

Interestingly, though the policy is not ‘retrospective’ in application, the operators whose licenses were cancelled, would have to follow guidelines formulated in the new policy.

Sibal clarified that all operators who wish to change from 2G technology, available at 4.2 Mhz, to 3G technology, available at 6.2 Mhz, would also be granted licenses at market-driven rates.

“If licenses are cancelled, the entire thing is on a market-driven price. If not cancelled, if some are cancelled, others are not cancelled, those which are cancelled on a market-driven price,” Sibal said.

“Those who are not cancelled, till 6.2Mhz, market-driven. Existing, beyond 6.2 Mhz, market-driven, so that everybody is on a level playing field. No discrimination against anybody. That is the new policy,” he added.

Sibal, who took over in November after his predecessor Andimuthu Raja resigned following charges of financial irregularities in the allocation of 2G spectrum licenses, said that the process would start in the next 100 days, but did not elaborate. (ANI)