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Recommendations on Review of license terms and conditions and capping of number of access providers
Telecom Regulatory Authority of IndiaReview of license terms and conditions and capping of number of access providers
New Delhi: August 28, 2007
Mahanagar Doorsanchar BhawanJawahar Lal Nehru MargNew Delhi-110002
RecommendationsOn
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Recommendations on Review of license terms and conditions and capping of number of access providers
Preface
TRAI received a reference from Department of Telecommunicationsseeking recommendations on the issue of determining the number of accessproviders in each service area and for reviewing the terms and conditions in theaccess provider license pertaining to substantial equity holding, transfer of licenses, mergers and acquisitions, permitting service providers to offer accessservices using combination of technology under the same license, roll-outobligations, etc.With due diligence, observing the spirit of transparency and carrying outwide ranging consultations with the stakeholders, the Authority has now finalizedits recommendations which are being forwarded to Department of Telecommunications. We do hope that the Department would take final decisionpromptly on these matters so that the policies of the licensor are in synchronismwith the developments in the telecommunication sector.It had become essential to seriously consider the issues like “Who shouldbe the best judge to determine the spectrum prices?” and “What is the mosttransparent mode of spectrum allocation?” The Authority while makingrecommendation has made attempts to introduce market forces to maximum inthe decision making. It is obvious that lot of development have already takenplace in this sector and the Authority while respecting legacy and level playingfield has to fall back on a modular building approach. The Authority hasapproached the issues to enable open market functioning and a transparentpredictable process where decision necessarily has to flow from the licensor. Ithas attempted to make it easy for potential rivals to get into the market. As aRegulator we are concerned with maximizing the welfare of the consumers,healthy growth of telecom and financial viability of the telecom companies. It isour belief that these objectives have been largely addressed in theserecommendations.(Nripendra Misra)Chairman, TRAI
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Recommendations on Review of license terms and conditions and capping of number of access providers
Table of Contents
Chapter 1 Introduction.......................................................................................................4Chapter 2 Entry Limit in Access service provision.........................................................12Chapter 3 Intra-circle Merger, Acquisition and Transfer.................................................59Chapter 4 Access services using combination of technologies under the same license104Chapter 5 Roll out obligations.......................................................................................121Chapter 6 Summary of recommendations....................................................................137Annexure I. DoT’s letter dated 13th April 2007 seeking TRAI’s recommendations......145Annex II DoT’s Guidelines for merger of licences in a service area..............................147Annex III Number of wireless service provider in each service area along with their market--------------share...............................................................................................................151Annex IV WPC spectrum allocation criteria..................................................................157Annex V Comparison of WPC’s criteria subscriber threshold with the actual subscriber base......................................................................................................................................158Annex VI List of cities with over a million population.....................................................165Annex VII Subscriber number possible to serve with spectrum amounts.....................166Annexure VIII: Some of the Countries where Spectrum is managed by Regulator.....168Annex IX Market share of operators.............................................................................169Annex X Circle-wise analysis of Concentration Ratios of Wireless Market shares.......173Annex XI International practice on roll out obligations for 2G/3G licenses...................174
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