122 2G licenses will have no impact on telecom customers: TRAI

Posted By: Religare
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122 2G licenses have no impact on telecom customers: TRAI
Telecom Regulatory Authority of India (TRAI) said that the Supreme Court's decision to cancel 122 2G licenses of nine companies would have no impact on the customers, as around 95 per cent of total subscribers belong to operators which got licenses before January 2008.

"The Supreme Court judgement will be implemented. Customers will not be impacted from the cancellation of licences as around 95 per cent market share is of those who got licences before January 2008," said Telecom Regulatory Authority of India Chairman J S Sarma.

Additionally, the authority also clarified that the despite the development in place, the customers could still avail the facility of switching the service provider using the mobile number portability.

"Subscribers have option to port out through MNP. We will instruct operators to inform their subscribers and come out with advertisement," added Sarma.

Meanwhile, the entire issue comes at the backdrop of the decision ordered by SC regarding the well known 2G scam under which the apex court announced cancellation of 122 licences. Consequently, upon the cancellation, the companies are set to lose their accounts. Additionally, over 500 Mhz spectrum will be available for auction.

Uninor (joint venture between Unitech and Telenor of Norway), Loop Telecom, Sistema Shyam (joint venture between Shyam and Sistema of Russia), Etisalat DB (joint venture between Swan and Etisalat of UAE), S Tel, Videocon, Tatas and Idea are the companies which would be losing the order resulting from the SC's decision.

Consequently, with the new licensing regime in place, telecom players will have to pay price of spectrum determined through auction.

"In future all licence will be Unified Licences. This has been discussed by Telecom Commission as well. It is at advance stage of consultation in the government. Whosoever will hold UL can take spectrum. We are also contemplating about migration of existing licence to UL. All these issues will be discussed and decided shortly," mentioned Sarma.

Read more about: telecom, 2g
Story first published: Friday, February 3, 2012, 13:30 [IST]
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