Thursday, 7 March 2013

4G spectrum: No undue benefits to Mukesh Ambani's Reliance Industries, says ... - Economic Times

NEW DELHI: The government trashed allegations by mobile phone companies that it had extended 'undue benefits' to Mukesh Ambani's Reliance Industries (RIL) by allowing 4G spectrum holders to offer voice calls to customers by paying an additional Rs 1,658 crore for a pan-India licence.

RIL is the only company that has holds pan-India 4G permits. "The decision to allow 4G spectrum winners to offer voice by pa ying an additional Rs 1,658 crore was based on recommendations of both (sector regulator) Trai and the telecom commission. The regulator said that everyone should be allowed to migrate to a Unified Licence and then offer voice," telecom minister Kapil Sibal told ET.

He said that any government decision that 'increases competition and reduces tariffs was good for consumers', while adding that company (RIL) had bought 4G airwaves at market rates.

In a related development, RIL on Thursday slammed the Cellular Operators Association of India (COAI), the GSM-industry lobby, for opposing the policy that allows 4G spectrum winners to provide voice services, and said the industry body had 'misrepresented facts and misquoted the auction rules with the mala fide intent to mislead people and pressurise government into taking a lenient view on serious licence breaches by its members'.

The Mukesh Ambani-promoted telco also challenged incumbent operators to 'battle with competitors in the open market rather than indulge in disreputable practices'.

In its communication to telecom secretary R Chandrasekhar, RIL said that auction rules did not restrict it from migrating to any licence issued by the government. It further said that COAI had earlier supported the government's stance to charge Rs 1,658 crore for 4G players who wanted to offer voice and added that the 'sudden change of stance by the industry body was motivated'.

Decision to allow voice on 4G was recommended by both Trai and TC: Govt


Reliance was responding to recent allegations by COAI, representing operators such as Bharti Airtel, Vodafone and Idea, that the telecom department was "illegally trying to enlarge the scope of RIL's services under the pretext of migration to a unified licence without considering the promises made at the time wireless broadband (BWA) airwaves were auctioned" back in 2010.

Telecom secretary R Chandrasekhar, too, dismissed allegations by incumbent operators and said that all 4G spectrum winners, including RIL, had the option of taking a full-fledged mobile permit (Universal Access Service Licence) by paying Rs 1,658 crore in 2010 and offering voice facilities. But successful winners had opted to take an internet service provider (ISP) licence that cost a mere Rs 30 lakh.

"The 4G auction rules of 2010 did not bar companies from offering voice. We are also moving to a Unified Licence (UL) regime where companies can offer all services under a single permit. Trai has categorically said everyone should be given the option of migrating to an UL," Chandrasekhar said.

He said that a pan-India mobile permit that came bundled with airwaves cost Rs 1,658 crore earlier, and poin ted out that government was imposing this amount on 4G winners to offer voice and migrate to UL without giving them any additional airwaves.



via Technology - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNF4P7FaE91fIRttD5ymT0RXO17blQ&url=http://economictimes.indiatimes.com/news/news-by-industry/telecom/4g-spectrum-no-undue-benefits-to-mukesh-ambanis-reliance-industries-says-kapil-sibal/articleshow/18857375.cms




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