The Chief Vigilance Commission (CVC) has asked DoT to review the policy guidelines related to 3G spectrum auctions to ensure that foreign firms participating in the process stand a fiar chance to win the auctions, reports The Economic Times.

The report says that CVC has warned DoT that existing norms are biased towards Indian operators.

“Ensure fairness and transparency in 3G auctions and offer equal opportunity to all potential bidders,” said CVC to DoT.

According to existing norms, new players entering the Indian mobile space through 3G are required to acquire 2G spectrum as well. But practically there is not enough spectrum available for 2G services. There are 343 applications already in queue for 2G spectrum.

“Acquiring UAS licence is a prerequisite for bidding in 3G auctions. This would necessarily mean that new 3G entrants would need to acquire a 2G licence from the market at a very high price. In our view the policy is not offering a level-playing field to bidders,” said CVC.

“Since 2G spectrum is scarce, and before implementing 3G, one has to acquire a 2G licence, in the current scenario, the new entrant is left with no option but to buy it at an exorbitant price from UAS licensees, who are in a position to trade their acquired licences for a premium. In our opinion, this is an entry barrier that needs to be reviewed in such a manner that a successful and highest bidder for 3G spectrum auction is guaranteed UAS licence from DoT at the right price,” added CVC.

source:telecomtiger