The Department of Telecommunications (DoT) has decided to refer the issue of vacation of spectrum — up to 100 Mhz — to an empowered group of ministers (EGoM). The move followed differences between the DoT and other departments, including those of information and broadcasting, defence and space. The vacated spectrum would be used to ensure the availability of spectrum for the telecom industry.
The telecom industry is facing a spectrum scarcity and the DoT is dependent on other ministries for vacation of spectrum to fulfill the needs of the growing telecom industry.
“There have been some differences over spectrum assignment between the DoT and other departments. There have, of course, been some agreements as well. But issues over which views diverge are being referred to the EGoM. A decision has been taken that the EgoM, headed by Finance Minister Pranab Mukherjee would look into these issues,” a senior DoT official told Business Standard.
The official, however, did not reveal the amount of spectrum likely to be vacated. “It (the amount of spectrum) will be quite significant,” the official said.
On the disagreements between the DoT and other departments, the official said different departments had their own points of view and each was, no doubt, relevant and reasonable from a certain perspective. “But, what has to be done at the level of the EGom is take an overall perspective to come out with a final decision…such issues need careful and in-depth consideration,” he said.
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The DoT had also disagreed with the defence ministry over the setting up of an optical fibre network (OFC) in lieu of vacation of spectrum by defence services. The defence ministry had vacated 15 MHz 3G spectrum, which was auctioned last year. It had also vacated 15 MHz 2G spectrum, which had been allocated to new operators. Under the agreement, the remaining spectrum — 10 MHz spectrum in 3G (for two operators) and 5MHz in 2G — would be vacated only after the OFC network, slated to be over by 2012, is complete. However, the defence ministry said there have been delays by the DoT in laying the OFC network and in notifying the defence band and interest zone. It also said the finance ministry had not waived the spectrum charges of Rs 10,000 crore.
According to the Telecom Regulatory Authority of India, the requirement of spectrum in the next five years would stand at around 500-800 MHz, including 275MHz for voice services alone. On the other hand, available spectrum stands only at about 287-450 MHz.
The DoT is also in talks with Power Grid Corporation of India Ltd for the vacation of 10-12 MHz in different circles in order to form a single block of 20 MHz.
