Allocation policy may be delayed

A policy on allocation of spectrum, a key but scarce resource for the mobile telephone sector, is unlikely this month as a group of ministers set up to study vacating of spectrum by the armed forces is yet to hold its first meeting.

Besides allocation, the GoM set up by Prime Minister Manmohan Singh was entrusted with the task of finding ways to vacate spectrum being used by the armed forces. Spectrum, which refers to airwaves used for mobile communication, is used by the defence forces for their communication needs.

But even before the GoM could meet, the department of telecom last week announced norms for additional spectrum allocation to both GSM and CDMA operators.

DoT officials said the GoM should focus only on the most difficult and core issues like how to get spectrum vacated from the armed forces, the roadmap for shifting to an alternative spectrum band and the cost associated thereof and not on details like allocation criteria.

While telecom PSU BSNL, which too is counted as a major user of spectrum, is in the process of releasing it, officials felt that the defence ministry could play the "strategic" card to not release spectrum.

The delay on part of GoM to even look at the issue, let alone solve it, is only adding to the problem. So getting some spectrum released by the middle of this year (June-July) could only be a tentative time-frame unless some drastic intervention comes from the "highest quarter".

Telecom Minister Dayanidhi Maran had earlier said that the spectrum policy (which would also include the much-awaited policy for 3G mobile services) would be in place by April.

Last month, the prime minister too acknowledged the lack of spectrum and assured that the government would release additional spectrum for mobile telephony expansion shortly.

The spectrum band under question is "i t-2000" (international mobile telephony) which also finds its place in national frequency allocation plan 2002. This band (1920-1980 paired with 2110-2170) is necessary for third generation mobile services, which will enable operators to offer voice, video and data on a mobile phone.

While some portion (1920-1980) of this band lies with BSNL, the PSU is currently in the process of releasing this amount of spectrum by replacing it with optical fibre cable.

The GoM headed by Defence Minister Pranab Mukherjee has not met even once to work out functional areas. Only after an agreement on releasing spectrum, quantity and costs of shifting to an alternative band is reached can it be said that the GoM has made some progress.

Considering that the issues are of high stake and need extensive discussions, which may run into months, the solution could only be delayed, officials said.

The GoM will include Maran, the finance and law ministers. Montek Singh Ahluwalia, deputy chairman of the Planning Commission, is a special invitee to the GoM.

In fact, the prime minister's office had to intervene on reports of armed forces unwilling to free spectrum capacity for mobile companies and instead asking for reservation of a special zone.