The government on Monday asked cellular operator Idea to surrender the licence of either Punjab or Karnataka telecom circle to enable the merger of Spice Communications with itself.

Department of Telecom secretary Siddharth Behura said the company would not get any official "response" on the merger proposal till one of the two licences was returned.

“Policy is very clear. What will one do with two licences?,” said Behura.

The DoT has also made it clear that the company would not get any "refund" on the return of licence.

Earlier this year Idea Cellular, one of the fastest-growing mobile-phone carriers, offered Rs 32.4 billion ($757 million) for control of Spice Communications.

The Government hopes to finalise the process auctioning the next generation 3G mobile spectrum by September 30.

Telecom Secretary, Sidhharth Behura said, “Technical and financial details are being discussed. Once that is done, this e-auction process for 3G spectrum would be finalised by September 30.”

Before allocating the 3G spectrum, the government will invite request for the proposals for rolling out mobile number portability (MNP).

The government has also allowed the foreign players to take part in the next generation telecom arena and is thus expecting a good response from the bidding process as it hopes to raise it up to a level of Rs 40,000 crore.

KEC International, part of the Rs 13,500-crore RPG Group, engaged in laying of power transmission lines on EPC basis globally, is reportedly planning to enter the business of erecting telecom towers in the rural areas as a part of its diversification plans.

The company aims to invest Rs 100 crore for this business plan, under which it would set up 400 telecom towers in the rural areas.

New Delhi, August 11: Idea Cellular was asked by the Government to surrender either its license or that of Spice Communications, its latest acquisition, to avoid overlapping.

However, Idea would not be refunded the license fee said the Telecom Secretary Sidhharth Behura.

According to sources, Idea is likely to surrender its own licenses and retain Spice licenses in both, Punjab and Karnataka, circles as Spice has 800 Mhz spectrum in these areas and can accommodate more users.

Besides, Idea is yet to start its service whereas Spice is already offering services there.

Stockholm - Swedish telecommunications equipment maker Ericsson has dropped to third place on the Stockholm Stock Exchange in the wake of recent financial turbulence, a report said Monday.

Ericsson had on August 7 lost almost half its value in terms of market capitalization compared to the corresponding day in 2007, the Svenska Dagbladet said.

The group's market capitalization was valued at 212 billion kronor (33.8 billion dollars), compared to 408 billion kronor on August 7, 2007.

Tata Teleservices Limited has decided to launch its GSM services in the country. It will spend approximately Rs 6,450 crore for expansion of its GSM network by 2010. It will also spend some amount to promote its already existing CDMA service. The company is expected to launch GSM services by the end of financial year 2009. The company will also bid for 3G spectrum.

Earlier in the March, the Department of Telecommunications (DoT) permitted Tata Teleservices to operate GSM services using the same license of CDMA. Tata has been directed to pay fees for GSM services, which are likely to start in 19 circles.