Developing Telecoms | 3G spectrum-sharing off the cards in India?

17 May 2012

Industry News

LATEST NEWS:

Thai operator secures wireless distribution agreement Financial services project reaching out to millions of Africans Fibre investment on the way in Algeria Android tablets gaining popularity in Southeast Asia Bharti seeking JV takeover as profits slide Solar-powered learning initiative takes off in Uganda GSMA voices criticism of Indian licensing proposals Enhanced mobile broadband deploying across three Baltic countries Market developments lay the foundation for future growth in Iraq India Feels More Shockwaves from the So-called ‘2G Scandal' Overpriced broadband faces fibre challenge in Angola First commercial 4G services go live in Croatia VimpelCom sells Vietnamese assets TRAI advocates new operators entering 2G auctions Romania’s first MVNE launching imminently Indian tax change could provoke legal action from Vodafone Mobile growth slows in Iran as penetration reaches saturation point Thailand close to finalising 3G auction process Internet Exchange Points Spur Internet Growth in Emerging Markets Incoming fibre boosts investment prospects for Burundi 3G on the way in Djibouti, but competition is required Saudi incumbent looks abroad amidst heated domestic competition Orascom serves Algerian government with arbitration notice Kenya’s mobile sector recovering from slump Download deal aims at attracting Indian Android users Bangladesh set for mobile & internet growth as Indian relations improve Android takes the lead in China by doubling market share Liberalisation driving growth for Bahrain’s broadband Partnership agreement drives roaming costs down across nine African countri... Indian 2G licence cancellations affirmed by Supreme Court TeliaSonera in talks over MegaFon’s future HSPA+ upgrade for Thailand’s state operator Growth set to continue in the Philippines despite looming saturation

3G spectrum-sharing off the cards in India?

Tuesday, 13 December 2011 12:56 | James Barton

Attention: open in a new window.

A new proposal may spell the end of 3G roaming alliances between Indian operators – as they are reportedly losing revenue for the country’s government. Changes to the country’s legislation could provide the government with an addition INR7 billion (US$134 million).

The current law stipulates that operators which own 3G spectrum pay an additional share of their revenue to the government as a ‘spectrum usage fee’. However, operators which do not own frequencies – and instead share them as part of an agreement – are not legally obliged to pay this charge.

As no operator in India holds a 3G licence which covers all of the country’s telecom circles, spectrum-sharing arrangements are necessary in order for operators to provide nationwide coverage without any ‘dead’ zones.

Spectrum-sharing arrangements between operators have reportedly been declared illegal by both the Indian DoT (Department of Telecommunications) and the regulator TRAI (Telecom Regulatory Authority of India). However, none of the operators in question have yet been punished, and confusion over 3G roaming means that clearer legislation on the issue may be welcomed by operators.

The government is due a standard revenue share of 6% from operators; if operators own spectrum in the telecom circle, this rises by 1%. The new proposal would apply this fee to operators that are offering services in a telecom circle where they do not own spectrum via a sharing agreement.

Controversially, operators could be charged retrospectively for the entire period that their sharing agreements have been active. Major Indian operators – including Vodafone Essar, Bharti Airtel and Idea Cellular - have been demanding that the fees they have already paid be refunded if national roaming agreements are ruled illegal, on the ground that they had previously received approval for such agreements.

Tags: