The Department of Tele-communications is close to allocating start-up spectrum in seven more circles, in addition to Tamil Nadu, where the process is set to begin next week.
According to the telecom ministry's plan, the companies would get 4.4 MHz each and the allocation would be completed within a fortnight.
The DoT will allocate unused spectrum in seven circles - Kerala, Orissa, Kolkata, Bihar, Madhya Pradesh, Andhra Pradesh and Karnataka - for new Universal Access Service Licence holders.
The allocation will be based on the priority list of the licensees, according to sources close to the development. The licensor is also looking at the possibility of allocating further spectrum in the North-East.
The DoT's Wireless Planning and Coordination wing is looking at the availability of spectrum in these circles, say sources.
The new applicants for these circles are Unitech, Datacom (a Videocon group company), Idea Cellular, Stel, Swan Telecom and Loop Telecom (BPL subsidiary). Existing players like Bharti Airtel and Vodafone Essar have also applied for spectrum in these circles.
According to DoT sources, there is spectrum available for three or four players in these circles and the allocation will happen "immediately". Further allocation will happen on the basis of the vacation of spectrum by the defence forces, they say.
Analysts said the move was significant and would help the new telecom aspirants start services.
For subscribers, more competition will help improve services and reduce prices. This will also help the industry achieve the target of 500 million subscribers by 2010.
