Trai paper on 3G spectrum allocation next week

After the department of telecom lobbed the issue of allocation and pricing of spectrum for 3G mobile services to its court, Trai is all set to release a paper next week to gauge stakeholders' views.

"Four days ago, we received the letter from DoT asking us to give our recommendations on the methodology of 3G spectrum allocation and its pricing. We have worked out a plan which will kickstart next week with the release of an issue paper... To get the views of the stakeholders," said Trai Chairman Nripendra Misra.

He, however, declined to comment on whether 3G spectrum should be priced, saying the transparent and fairest way to settle the matter was to get the stakeholders' views and look at this specific issue afresh, since a lot has already been spoken about it recently. "It is premature to talk about whether 3G spectrum should be priced or not," he said.

Last year Trai had given its recommendations on the entire issue of spectrum, including pricing of 3G spectrum, where it suggested that 3G spectrum should be given free, as it is an extension of 2G or 2.5G services which the operators are offering at present.

The chairman said: "The earlier recommendations were a year old and lot of debate on 3G spectrum, including pricing has taken place. Therefore, the government thought it fit to ask Trai to revisit the matter."

Asked whether the regulator would be influenced by the earlier recommendations, Misra said: "We would be fair, transparent and take a consultative process to arrive at our recommendations on the 3G spectrum issue.

"We would be sensitive and receptive to all suggestions. Neutral does not mean not having views, but not taking sides in the controversy."

Spectrum is the lifeline of mobile services and has raised enough dust in the Indian telecom sector over its allocation, including for 3G (third generation) services.

3G spectrum, according to leading CDMA player Tata, should be priced at Rs 1,500 crore as it is a scarce commodity. GSM operators are opposing this suggestion tooth and nail, saying this would be against the global trend and make India miss the 3G bus by pushing the cost of service.

Last week, Telecom Minister Dayanidhi Maran said: "We have requested Trai to look into the spectrum for 3G services... Besides, the department of telecom has already taken up the matter with the Ministry of Defence and we hope to get 45 Mhz of frequency from defence services by the year end."

Spectrum that the armed forces are expected to release is in the IMT 2,000 band and 1,800-1,900 Mhz band, which is the band for 3G services. 3G spectrum will allow mobile telephone operators to offer high speed data, voice and video services.

Former Trai chairman Pradip Baijal had said that auctioning of spectrum for 3G services would create problems and suggested issuing separate licences for such services as an alternative.