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March 19, 2008 16:41 IST
The government has proposed stiff network roll-out obligations for next generation (3G) mobile service providers, failing which they will have to pay a hefty penalty for hoarding spectrum or the radio frequency.
"If operators do not achieve their roll-out obligations, they would be given one year within which to fulfill their roll-out obligations. Within this one year, the operators would be fined a spectrum cess of 2.5 per cent of their winning auction per quarter," department of telecommunication said in its proposed guidelines for auction and allotment of spectrum for 3G services.
"If operators do not complete their roll-out obligations even within the one year grace period, their spectrum assignment would be cancelled and the spectrum would be allocated via an auction to a new operator," the DoT said.
Moreover, no entity related to the defaulting operator would be permitted to participate in the subsequent auction.
The operators would be allocated spectrum (radio frequency) in 2.1 GHz band through a process of auction.
The successful bidder would get a Unified Access Service (UAS) license for 3G services (by paying the required entry fee) and the operators would not be eligible for 2G spectrum on this license, the proposed guidelines said.
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