India Mobile Policy for 3G, WiMax and Mobile Number Portability

>> 3G & WiMax

New Guidelines

• Spectrum will now be auctioned in two phases.
  
  
• Bidding for broadband spectrum based on technologies such as WiMAX will be held on January 16, 2009.
  
  
• 3G mobile services bidding will be done in second phase on February 9, 2009.
  
  
• Revenue share of only 1 per cent on operators winning WiMAX spectrum.
  
  
• Operators winning 3G spectrum will have to pay 2 per cent additional revenue share if they have more than 8 Mhz of 2G spectrum and 1 per cent if they have less.
  
  
• WiMAX players have been allowed to pay spectrum charges after one year of getting the radio waves while 3G operators will have to start paying retrospectively starting January 2009.
  
  
• 3G bidders will have to pay at least Rs 2,020 crore for pan-India spectrum, operators who win WiMAX spectrum will have to pay only Rs 1,010 crore.
  
  
• To prevent anti-competitive activity, the DoT has barred bidders from entering into any arrangements with suppliers of equipment or software that would restrict the company’s ability to supply similar equipment to other operators.
  
  
• The DoT has also stipulated that no two bidders should have the same promoter owning more than 10 per cent stake. If two bidders have common ownership greater than 10 per cent, then one of them must withdraw by the last date of submitting the application or both will be disqualified.
  
  
• New entrants will be permitted to use the networks of existing operators (in those areas where they do not have a presence) until they build pan-India networks and that mobile number portability will be introduced to enable them gather subscribers from incumbents.
  
  
• Foreign players will be permitted to participate in the auctions without obtaining telecom licences (as 100% entities). This implies, only those operators who are successful in the upcoming auctions need to obtain a licence and find an Indian partner (as existing regulations restrict foreign holdings to 74% and mandate that an Indian entity holds the remaining 24%).
  
  
• Intra and inter circle roaming will be mandatory between the networks of all operators.
  

Time Frame

• Dec 8 -- Information memorandum to be issued
  
  
• Dec 11-13 -- Interaction with potential bidders
  
  
• Dec 19 -- Pre-bid conference
  
  
• Dec 31 -- Final date for application
  
  
• Pre-qualification of bidders -- Jan 5
  
  
• Mock Auction -- Jan 12-13
  
  
• Start auction for WiMax -- Jan 16
  
  
• Start auction for 3G -- Feb 9 

>> Mobile Number Portability (MNP)

• India will be divided into two zones consisting of 11 circles areas each.
  
  
• Each zone will have one MNP service provider.
  
  
• The two service providers will be selected through a bidding process.
  
  
• Existing telecom players will not be allowed to be an MNP service provider.