Weekly News - DoT issues LoIs to 9 players

The Department of Telecommunications (DoT) issued Letters of Intent (LoIs) to nine eligible applicants who had applied before Sept. 25, 2007. Four companies - Unitech, Datacom (Videocon Group), Shipping Stop Dot Com (BPL Group) and Shyam Telelink - received LoIs for pan-India mobile operations. Swan Communications got LoIs for 13 circles and S Tel for 6 circles. At the same time, Parsvnath, Cheetah, Allianz Infra and HFCL failed to get any LoIs. The proposals of Indiabulls and ByCell were put on hold due to lack of statutory clearances. Moreover, Idea received LoIs for 9 new circles, Tata Teleservices for 3 new circles and Spice Communications for 4 new circles.

Around eight of these companies paid the required licence fees and bank guarantees. They also deposited financial and performance guarantees. They will now queue up for a newly introduced licence - the Wireless Operating Licence - which will be granted on a first-come, first-served basis, subject to availability of spectrum. The DoT also cleared application from Idea, Vodafone Essar and Aircel for 2G spectrum in circles where they currently hold licences. Idea holds licences in two circles, Vodafone in six and Aircel in 13 circles. In another significant development, the DoT also cleared Tata Teleservices' application for GSM spectrum. The applications of existing GSM operators such as Bharti for additional spectrum, which have been pending for close to two years, have also been cleared.

Once the spectrum is vacated by the defence forces, the demands of existing GSM operators for additional spectrum, for further expansion in the circles where they already operate will be considered first. Vodafone, Idea and Aircel, who already hold licenses come next in queue. Next in line will be dual technology licence holders such as RCOM, Tatas, HFCL and Shyam, who will be given radio frequencies to launch GSM services. All new entrants who received LoIs on Thursday to offer telecom services come last.