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Department of Telecommunications (DoT) has allocated the requisite spectrum to the private players for rolling out 3G services in the country, as scheduled.

The spectrum was though handed by the DoT with some changes made to the license terms for the telcos in order to ensure timely initiation of the 3G services as well as efficient use of the spectrum provided.

The seven telcos, Bharti Airtel, Vodafone Essar, Reliance Communications, Tata Teleservices, Idea Cellular, Aircel and STel, received the 3G spectrum after winning the same in the auction held in May this year.  The operators has been authorised to use the spectrum for 20 years from September 1, 2010, despite of the expiry of their telecom licences before that period.

As per the terms of license provision the operators have been imposed with an obligation to cover at least 90% of the service areas in the metro circles and at least 50% in most of the other circles within the next five years. While, if the operators fail to achieve the roll-out obligations, they would be given extension for one more year after paying 2.5% of the spectrum acquisition charge per quarter.

The Central Government of India garnered revenues of Rs.67,000 crore through the 3G spectrum auction in total. The private telcos paid Rs.51,000 crore whereas the state-run telcos, BSNL and MTNL, made a payment of Rs.16,000 crore towards acquisition of the spectrum for delivering high-end communication services to the users. Government looks to reduce the fiscal deficit of the country through the revenue earned by the auction.

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