1 June:Government may refer the issue of allowing foreign players in the third generation telephony, which allows faster data transfer, to an empowered-Group of Ministers as differences between DoT and regulator TRAI widen.
The Department of Telecom (DoT) is in favour of allowing foreign players in the 3G segment, while TRAI says it should be limited to existing players as permitting foreign players would negatively affect the affordability of services.
A section in the DoT has also expressed concern over TRAI’s interference on policy issues and said the regulator’s powers are limited to giving recommendations and the policy has to be framed by the government.
TRAI had earlier written a letter to the Finance Secretary cautioning the ministry over permitting foreign players in 3G services and also to the Telecom Secretary, saying there would be enough competition among the existing mobile operators.
Asked whether the issue has been referred to the eGoM, sources said DoT has not taken a final view but a decision is likely soon.
Communication and IT Minister A Raja is understood to have discussed the matter with Prime Minister Manmohan Singh and Finance Minister P Chidambaram, sources said, but the outcome of the meetings was not known.
Raja had recently said foreign players will be allowed to offer 3G services in India and modalities of allocating spectrum through auction for 3G services would be worked out soon as the matter has been referred to the Law Ministry.
"Whether there is common auction or open auction there is be no bar on foreign players," Raja had said.The country allows 74 percent foreign direct investment in the telecom sector.The government is planning to start 3G telecom services by January next year.
3G enable faster data connectivity as well as efficient utilisation of scarce spectrum, sources said, adding that final guidelines for the services as well as for auctioning of spectrum would be announced soon.
The sources said policy guidelines have been delayed as the issue was struck over foreign players participation and differences between TRAI and DoT have widened significantly.
According to them, DoT and Finance Ministry are in favour of allowing foreign players to bid for 3G spectrum to enhance competition and get a higher value for the scarce resource.
TRAI says including foreign players would not only complicate the process but also increase the delay in the 3G rollout.Courtsey : DD NEWS