DoT to issue spectrum in four circles

This will enable the nine new letters of intent holders to start operations.

In a move that will give respite to the companies that are in queue for spectrum, the Department of Telecommunications (DoT) plans to allocate radio frequency in four circles "" Andhra Pradesh, Kerala, Orissa and Tamil Nadu (including Chennai) "" to new licensees.

This would enable the nine new letters of intent (LoIs) holders to start operations on the basis of their position on the priority list.

Nine firms "" Datacom Solutions (a Videocon group company), Aska Projects, Spice Communications, Swan Telecom, Loop Telecom (a subsidiary of BPL Mobile), Unitech Builders & Estates, Nahan Properties, S Tel and Shyam Telelink "" have been issued LoIs for starting mobile services.

According to sources close to the development, Datacom Solutions is the first in the queue in these circles. The licensor, sources said, was looking at allocations in other circles after the release of the spectrum by the defence forces.

The move comes after the Wireless Planning and Co-ordination cell of the department identified availability of GSM 1,800 MHz spectrum in these circles.

The companies would get spectrum in the 4.4 MHz band for initial operations under the 1,800 MHz band. The department has found that there is no spectrum available under the 900 MHz band, which is more powerful than the 1,800 MHz band.

The spectrum would be first allotted on a "trial basis" and enable the users to confirm electro magnetic interference (EMI) and electro magnetic compatibility (ECI) with other operators in these circles.

Industry sources said spectrum was allocated on a trial basis for a month to confirm EMI and ECI compatibility after which the licensor permits the companies to keep the spectrum.

Earlier, companies like GSM major Idea Cellular had expressed their views of the availability of initial spectrum in these circles. In a letter written on February 18, Idea Cellular said it believed GSM spectrum was available for initial allocation in the nine service areas for which the company had received LoIs.

The Aditya Birla group company had also stated that spectrum should be allocated to eligible applicants on a first-come-first-serve basis (based on the date of application).