The Department of Telecommunications (DoT) has asked the finance ministry to give defence forces a waiver of about Rs 10,000 crore on spectrum charges, which would enable smooth release of the third block of 3G spectrum by July or August.
The department expected a decision soon, said a senior DoT official. The government recently completed auction of 3G spectrum, which yielded it Rs 67,700 crore.
The memorandum of understanding (MoU) signed between DoT and defence forces for vacation of airwaves had a precondition that spectrum charges for defence force should be waived.
“The finance ministry was involved directly or indirectly when the MoU between DoT and defence forces was signed. The waiver of spectrum charges is a precondition, so there is no question of any delay in putting off the charges, as desired by the defence forces,” said the official.
Asked about the quantum of spectrum charges that would be waived, the official said, “The technical details are being worked out…but it will be at least Rs 10,000 crore.”
The commercial launch of 3G mobile services, which would allow subscribers to access internet and download videos or movies at high speeds, would be possible from September 1 when successful bidders, including Bharti Airtel, Reliance Communications and Vodafone Essar, would be allotted spectrum.
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The defence ministry and DoT are committed to some deadlines on release of 25 MHz 3G spectrum. This is based on, among other things, the progress on the alternative optical fibre cable network which defence forces will use after they vacate 8the airwaves.
The armed forces have already vacated 10 MHz, and are expected to allocate more spectrum to DoT in July and August. State-run telecom giant BSNL, which is building the optic fibre cable network, will give orders for the equipment.
The remaining 5 MHz is expected to be released in 2013, when the optic fibre cable network will be ready.
The defence ministry and DoT have been at loggerheads for over an year on various issues regarding vacation of spectrum. DoT has openly complained that the delay in 3G auctions has been primarily because of reluctance by defence forces to vacate spectrum.
The defence ministry said it could not release spectrum before an alternative communication network was in place.