DoT to finalise M&A, spectrum sharing norms by June-end

The Department of Telecommunications (DoT) expects to finalise the norms for mergers and acquisitions and spectrum sharing by the end of June. It also plans to approve the National Telecom Policy (NTP), 2012, by the end of July.

NTP is set to usher in national mobile number portability (MNP) and free roaming across the country. However, according to a DoT note, once the Cabinet approves NTP, it plans to refer the issue of free roaming to the Telecom Regulatory Authority of India (Trai). National MNP is set to be implemented by February 2013.

These targets were stated by the department in its Plan document for 2012-13. The draft Cabinet note for the NTP was placed before the Cabinet last week, but was deferred due to disagreements among various ministries. DoT had asked for inter-ministerial comments on whether the auction of spectrum would be guided by the Supreme Court order on the auction and the current policy, or by NTP 2012.

The

Planning Commission has asked the DoT to clarify the implication of the new NTP on compliance with the court order.

In its order on February 2, the Supreme Court had cancelled 122 licences issued in January 2008. It had also asked the government to auction the vacated spectrum by August 31.

DoT would finalise the rules for the auction of spectrum on June 28. The Telecom Commission has referred the matter of spectrum pricing to an empowered group of ministers, headed by Finance Minister Pranab Mukherjee.

Trai had recommended a reserve price of Rs 3,622 crore (Rs 36.22 billion) for 1 MHz of spectrum, following which the Telecom Commission had asked it to consider the impact the price would have on rates, as well as on investments by telecom operators.

Though Trai had said the reserve price would have an impact of four to six paise per minute, operators said there could be an impact of 26-90 paise per minute, depending on the circle concerned.