The Hindu : Front Page : 5 Tamil Nadu firms get start-up radio frequency

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Wednesday, Apr 16, 2008
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5 Tamil Nadu firms get start-up radio frequency

Sandeep Joshi

NEW DELHI: After getting the go-ahead from Communications and Information Technology Minister A. Raja, the Department of Telecommunications (DoT) has begun the process of allotting spectrum to new companies, starting from the Tamil Nadu circle.

On Tuesday, at least five new companies that have got licences to operate in the Tamil Nadu circle were given the start-up radio frequency. These companies are Idea Cellular, Swan Telecom, Unitech, Datacom and Loop Telecom.

The existing subscribers, Airtel and Vodafone, were also given additional spectrum in the circle on the new subscriber-based norms of the Telecom Regulatory Authority of India (TRAI).

Pointing out that spectrum would not only give a boost to mobile connectivity but also benefit subscribers with cheaper call rates and other gains, a senior DoT official said it would start fresh competition and do good to the sector.

The DoT is now looking at other telecom circles where spectrum is available for distribution. New players in some other telecom circles, including Kolkata, Andhra Pradesh, Karnataka, Kerala, Orissa, Bihar and Madhya Pradesh, are also likely to get spectrum soon.

However, scarcity of spectrum in high density circles like Delhi and Mumbai is hindering the expansion of mobile services. The situation will ease if the defence forces vacate additional spectrum. Deliberations are on between the Telecom and Defence Ministries.

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