Applications after Sept 25 to wait for telecom licences

A slew of real estate companies, like DLF, Omaxe, BPTP and Avnija Properties (Dalmia Cement), and large corporations like telecom bigwig AT&T, Sterlite, Videocon, JSW Power, Hinduja's HTMT, Moser Baer Infrastructure, Ispat Industries Ltd and a Sam Pitroda-owned company are among the 25 companies whose applications will not be immediately processed by the Department of Telecommunications (DoT) for awarding mobile licences.

This follows Communications Minister A Raja informing Prime Minister Manmohan Singh that the cut-off date for processing applications for unified access service licences (UASL) was "up to September 25", the date when the DoT indicated that it would continue to receive applications only till October 1.

Raja said this in a missive to the Prime Minister on November 2, the first of the day, and later followed it up with another letter on the same day, this time in reply to a specific missive.

In the letter, Raja said the "procedure for processing the remaining applications would be decided at a later date, if any spectrum is left available after processing the applications received up to September 25". A total of 21 companies were in the queue by then, beginning from December 2006 when some existing operators applied for additional licences.

The other companies whose applications will now be processed at a later date are S Tel Ltd, Tulip IT Services Ltd, Ortel Communications, Electrotherm (India) Ltd, Meta Telecom, RSK Enterprises, Silicon Infoways and BK Modi's Cellebrum.com, among others.

S Tel Ltd, a 51:49 joint venture between Skycity Foundations and Telecom Investments (Mauritius) Ltd, is learned to have offered Rs 6,000 crore to the government for nation-wide mobile licences, with the promise of rolling out services within six months of getting the licences.

The company's backers are believed to be a south India-based builder and a large Russian telecom player.

Given the available amount of spectrum, nearly nine new operators per circle can be accommodated. Raja's letter emphasised that "an increase in the number of operators will bring real competition, lead to better services and increase tele-density at lower tariffs".

When contacted, a senior executive of Omaxe Ltd said the decision was "biased and a political one to reduce the number of applications".

Videocon Chairman Venugopal Dhoot said he would comply with any decision of the government and would not challenge it in court.

The company today amended its memorandum and articles of association to include telecom as one of the businesses that it proposes to carry out.

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SPECTRUM TALLY

100 MHz earmarked in 900-1,800 MHz bands for second generation (2G) mobile services

Of these, 35-40 MHz per circle has been allotted and in use by operators

Remaining 60-65 MHz includes 25 MHz of spectrum likely to be vacated by the defence forces over the next three to six months

35-40 MHz available for allocation could accommodate up to nine new operators per circle