Govt Likely to Defer Grant of New 2G Licences

by CXOtoday Staff    Aug 05, 2009

The Telecoms Regulatory Authority of India (Trai) has asked the government to keep in abeyance the grant of new 2G licences till the regulator finalises its recommendations.

The government had asked the regulator in a letter recently whether there is a need for more players as "sufficient competition seems to be already in place . The government had also sought Trai’s views on auctioning spectrum for 2G mobile standard, instead of the current practice of giving licencees entitlement for spectrum.

India has issued 281 licences for the country’s 22 telecoms zones, or up to 14 licencees per zone.

This move will delay entry of firms such as AT&T, Videocon Group, DLF, JSW, Hinduja Group, and Moser Baer which are waiting in the wings.

The government is also planning to call bids for 3G licences.

Trai’s letter of recommendation to government can be found at its official site http://www.trai.gov.in.