Apr 20, 2014

Govt to fix base price for 4G spectrum auctioning

KATHMANDU: A committee formed to review difficulties in implementing frequency policy is preparing to recommend the government to keep the base price of fourth generation (4G) spectrum below Rs 12 million per MHz for auctioning.


The three-member committee formed to conduct a study over complications in implementing ‘Telecommunications Radio Frequency Distribution and Pricing Policy 2012’ is all set to submit its report within a week. Even as the policy had decided to auction the high value spectrums, it was yet to set the floor price for 4G frequency auction.

Two companies — Nepal Telecom (NT) and Ncell — for the last three years have been asking Nepal Telecommunications Authority (NTA) to allocate spectrum for 4G, also known as long-term evolution (LTE). As per the government provision, it is the Radio Frequency Policy Determination Committee under the Ministry of Information and Communications (MoIC) that determines the frequency charges. The base price for auctioning of third generation (3G) spectrum was fixed at Rs 12 million per MHz two years back through the spectrum policy.

An official at MoIC said that the review committee is positive in limiting the 4G spectrum fee to a maximum of Rs 12 million per MHz and will recommend it to the policy determination committee for approval. “As the government is taking much time, the committee will also recommend it to start auctioning 3G and 4G spectrum within the next three months, with required amendments to related laws in a fast track manner,” the official added.

After the telecom companies complained of the frequency policy being rigid, MoIC had formed the review committee under the coordination of Mahesh Prasad Adhikari, a member of NTA, for the study. The committee includes Under Secretary of MoIC Anup Nepal and Deputy Director of NTA Ambar Sthapit. “We are holding another meeting on Tuesday and hope to make our report public very soon,” said Nepal.

The government has been planning to use 700 MHz, 3300 MHz and 2600 MHz bands for 4G service. The spectrum policy introduced in 2012 has also envisaged of bringing a new company as a 4G service provider. Currently, there are six telecom companies including the two big companies — NT and Ncell — that are providing 3G service.

Since NT and Ncell were assigned 3G frequency before the government came up with the new spectrum policy, they are currently paying the spectrum charge on the basis of floor price fixed for auctioning. However, NT has been refusing to pay old dues of 3G spectrum fee citing losses in the early years of service operation.

The MoIC official said that the committee is also preparing to suggest the government collect the outstanding dues of 3G frequency fee from NT — which stood at Rs 950 million as of last fiscal — at the earliest. The official also said that the committee will suggest the government to take back the unused additional frequencies from operators by fixing a deadline. - See more at: http://thehimalayantimes.com/fullNews.php?headline=Base+price+for+4G+spectrum+in+offing&NewsID=412258#sthash.Pqv8iPPi.dpuf

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