9th April, 2003
Ministry of Communications & Information Technology  


ISSUANCE OF FRESH LICENCES TO PRIVATE OPERATORS


Lok Sabha

Fresh tenders for grant of 14 licences for Cellular Mobile Telephone Service (CMTS) to fill up vacant slots in eight Telecom Circles were invited on 10th February, 2003. They are Andaman-Nicobar & West Bengal, Assam, Bihar, J&K, North East, Orissa, UP East and UP West. Although, seven companies had purchased the tender document but none of the companies submitted their bid. In addition, Telecom Regulatory Authority of India (TRAI) was requested to give their recommendations for grant of additional licences for CMTS in terms of New Telecom Policy (NTP) 1999, which inter-alia, stipulates that the entry of more operators in a Service Area shall be based on the recommendations of TRAI who will review this as required and no later than every two years.

TRAI have in their response dated 20th February, 2003, expressed its opinion that induction of Mobile Service Providers in various service areas can be considered if there is adequate availability of spectrum for the existing service providers as well as for the new players, if permitted. TRAI have also stated that it is of utmost importance to ensure adequate quality of service in this fast growing segment of the market.

This information was given by the Minister of State for Communications & Information Technology, Smt. Sumitra Mahajan in a written reply to a question by Dr. N. Venkataswamy in the Lok Sabha today.