DoT wants redrafting of LoIs

Wants spectrum allocation to be made subject to availability.

The Department of Telecom (DoT) has moved a note suggesting a new clause should be added in the letter of intent (LoI) given to new operators who have applied for a unified access services licence (UASL) that "spectrum allocation is not guaranteed and shall be subject to availability".

The note has pointed that 60 MHz of the 75 MHz for second generation (2G) services in 1,800 band that is available with the DoT should be the basis for deciding the number of letters of intent that can be issued.

Officials say that once the entire 70 MHz is vacated by the defence services, five to seven players could be accommodated in every circle.

However, the note points that as it will take some time for the defence services to vacate spectrum (which has agreed to release only 15 MHz in the first phase), the LoI must make this position clear to the operators by adding in a clause about availability.

The note also suggests that while offering LoIs the other key element which should be taken into consideration is the fact that "only serious players may deposit the entry fee that can afford non-availability or delays in spectrum allocation and roll out using wire line technology only".

The DoT has also suggested that in view of the large number of applications, redrafted LoI should be legally vetted by legal advisor (telecom) in the ministry before its issue.

In discussions between the DoT and the defence services the two sides had agreed that 15 MHz would be vacated in 2G by the year-end (which has still not happened). They had decided that another 25 MHz in 2G would come to DOT by March 2008 and the rest would be available by March 2009.

However, industry experts say that the 15 MHz will now be available not before the end of the first quarter of 2008 and could get delayed further.