With the prospect of general elections looming on the political horizon, it is not surprising that it is policy making time in the ministries overseeing the lucrative sectors of growth. Thus the government has announced a flurry of  new policies and guidelines for the telecommunications sector which continues to grow at a scorching pace.

Number portability

The policy on number portability – allowing subscribers to change service providers without changing numbers – was long overdue. This policy will certainly benefit subscribers even though it has been alleged that it has been done to benefit one particular service provider.

3G services

The guidelines on so called 3 G services –the third generation of mobile networks that allows data, video and multi media services – is a break from the past in that it makes several  welcome recommendations

First , 3 G spectrum is to be auctioned  to auction 3G spectrum . Operators would be offered spectrum in the 2.1 GHz band. And licences would be issued through a controlled, simultaneous ascending e-auction, by a specialised agency to ensure transparency in the selection process.

Second , during the first five years, the Government will not permit any trade of spectrum, mergers or acquisitions. 

Third , all players would  be allowed to offer 3G services and it will not be restricted to existing service providers .

Technology neutral platform

In another move , that has drawn considerable flak from the powerful GSM operators, the government has allowed CDMA service players to offer GSM services on their existing UASL licences. Moving at lightening speed, Reliance Communications paid up the licence fees of Rs 1651 crores for an all India licence. The company has been given the go ahead to start GSM based services in 14 circles ( Reliance already provides GSM services in 8 circles ).

New licences and spectrum allocation for 2G services