The Department of Telecommunications (DoT) plans to expedite the process of vacation of 55 MHz spectrum from the defence forces, as the proposal of refarming of spectrum mainly held by incumbent operators in all the 22 circles cannot be implemented without the release of this frequency.
Based on the Telecom Regulatory Authority of India (Trai) data, only 12 of the 22 circles across the country have availability of spectrum of 10 MHz after taking care of the needs of refarming. Key circles where spectrum up to 10 MHz is not available include the circles of Delhi and Mumbai, Gujarat and Punjab amongst others.
A senior DoT official said this issue would be taken up by the defence forces on a priority basis. They have to vacate a total of 110 MHz in 2G and 3G bands, but the department will ask them to release the 2G frequency immediately, because of the strict timeline of the 2G auction, the official added. This spectrum will be released in the 1,800MHz band, which will be included in upcoming 2G auction.
The government is slated to auction 2G spectrum in 1,800MHz band by August 31, according to the Supreme Court directive, following its order of cancellation of 122 licences issued in January 2008. An empowered group of ministers headed by Finance Minister Pranab Mukherjee yesterday decided to auction 10 MHz of spectrum in all circles. However, Trai had recommended auction of 5 MHz of spectrum in every circle. This is why the release of spectrum by the defence forces now assumes significance.
The refarming of spectrum in the 900 MHz band means spectrum will be taken back from existing players, including Bharti Airtel, Vodafone and Idea Cellular. And it will be given spectrum in the 1,800MHz through the auction process. The refarming of spectrum has already been approved by the government. However, the incumbent operators have been opposing the move to refarm spectrum, saying they will have to write off atleast Rs 150,000 crore of investments.
Trai in its recommendations on auction of spectrum had proposed the refarming be done when licenses of operators will come up for renewal strating 2014.
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Earlier, DoT had planned to include all 110 MHz of spectrum be vacated by the defence forces in the auction of 2G spectrum but the plan did not materialise.
The proposal for vacation of spectrum was put forward by DoT in an EGoM meeting headed by the finance minister. According to the agreement, between DoT and the defence forces, about 150 MHz has to be released in the 1,700-2,000 MHz band, which would include spectrum in 2G and 3G bands. About 55 MHz of 2G spectrum each, will be vacated in the 1,710-1,765 MHz and 1,805-1,860 MHz bands for use in telecom services. Following the differences between DoT and ministries, the matter of vacation of spectrum was referred to the EGoM.