The proposed cleanup included moving current occupants of the 1800 MHz and 1900 MHz frequency bands to be used to expand GSM, wireless local loop and the much hyped 3G services.
The consultation report recommended compensation for relocating current occupants to new frequency bands.
However, a Telecom Regulatory Commission official says the process, with a proposed December 2004 date for completion, is now waiting for policy direction from its governing body on the compensation issues.
Regulatory officials are now reportedly rethinking the compensation offer as, some of the current occupants have used the spectrum for over ten years – meaning that their equipment have already been is close to being fully depreciated.
It is understood that the current occupants have asked for other concessions if not compensation for relocating within the spectrum table.
Waiting for a decision from the regulatory commission, Sri Lanka’s only 3G license given out on a one year limited coverage test basis to Dialog GSM in March 2004 was extended till 2006 when the cellular operator applied for a commercial license at the end one whole year of testing.
The license limits the mobile operators ability to launch commercial 3G applications and services while allowing local application developers to road test their products on a 3G platform.
Meanwhile, it is understood that Sri Lanka is unlikely to go for a 3G auction model adopted early in the 3G evolution with the successful bidder almost bankrupt at the end of the process.
Instead Sri Lanka could adopt a fee based licenses, easing the initial investment requirement and freeing capital for developing applications for any commercial 3G platform.
-LBO Newsdesk: lboemail@vanguardlk.com
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