adequacy of spectrum, the procedure to distribute this scarce resource and 

the consequential requirement to build technical & economic frameworks that 

promote it's efficient utilisation. 

In India, Cellular Mobile Services started with a duopoly in 1994 95. These 

licenses were awarded through a bidding process for Service Areas mostly 

co terminous with provinces and metros. The technology at that point of time 

was specified as GSM and the licenses had a spectrum commitment of 4.5 + 

4.5 MHz later amended in 2001 to 4.4 + 4.4 with a possibility of increase to 

6.2 + 6.2. Keeping in view the development of technology, all the licenses 

were made technology neutral in 1999. Also, the third Cellular Mobile license 

was granted to the incumbent

1

 in 1999. In 2001, the Government auctioned 

the fourth Cellular License in 1800 MHz band.  In the 4

th

 Cellular license, the 

committed spectrum was 4.4 + 4.4 MHz and a possibility of increasing it to 

6.2.+ 6.2 MHz was mentioned . The spectrum charges were earlier based on 

number of mobile terminals and allocated spectrum. Since 1.8.1999 the 

spectrum charges have been converted to percentage of AGR. This varies 

from 2% to 6% based on the amount of spectrum allocated. 

The large uptake of cellular mobile services required spectrum in excess of 

4.4 MHz for GSM Service Providers. The Service Providers were assigned 

additional spectrums on meeting certain subscriber base criteria. Most of the 

operators today have 6.2 MHz, while some have been allocated upto 10 MHz 

based on criteria of subscriber base. The amount of revenue share increases 

with the increased allocation, i.e. 3% upto 6.2 + 6.2 MHz, 4% upto 10 + 10 

MHz, 5% upto 12.5 + 12.5 MHz and 6% upto 15 + 15 MHz. 

In Basic Services segment competition was introduced in 1997 98 with the 

introduction of duopoly in the country. These licenses were awarded through 

a bidding process.  Licenses were successfully awarded in 6 of the 20 Circles. 

For these service providers also, the spectrum was allocated to offer telecom 

services through wireless access. 

Post New Telecom Policy 1999, open competition was introduced in the Basic 

Services in 2001 and these licenses were available on First come first serve 

basis. In order to add value to their services, BSOs were permitted to provide 

`limited mobility' services. The frequency bands for providing their WLL (M) 

Services included 824 844 MHz paired with 869 889 MHz (FDD) & 1880   

1900 MHz (Micro cellular technology based on TDD). The Service Providers 

were given an initial 2.5 + 2.5 MHz to start service. The amount of spectrum 

could be increased to 5 + 5 MHz on meeting certain criteria (largely on 

subscriber base & roll out) in steps of 1.25 MHz. 

At the end of this phase of licenses, the Cellular Mobile Services were being 

provided on GSM platform while the WLL(M) Services were being provided 

using CDMA technology. 

1

 As a policy of the government, the incumbent (which was a part of Government till 2000) was not 

allowed to operate Cellular Mobile Services. 

3