The group of ministers on telecommunications today agreed to free 25 MHz of additional spectrum to mobile service providers over the next three years.
The ministry of finance is expected to shell out nearly Rs 900 crore for the upgradation of communication systems in the armed forces, which will enable them to use radio frequency more efficiently.
Currently, the defence ministry has provided 35 MHz spectrum for telecom services. The additional 25 MHz will be released in phases.
This will take the spectrum available per operator to 15 Mhz, if the additional frequency is distributed among the four cellular operators per circle.
The ministerial group, set up by Prime Minister Atal Bihari Vajpayee to resolve disputes plaguing the sector, was attended by Finance Minister Jaswant Singh, Defence Minister George Fernandes and Information and Broadcasting Minister Ravi Shankar Prasad.
Communications Minister Arun Shourie, External Affairs Minister Yashwant Sinha and Law Minister Arun Jaitley could not attend the meeting.
The group, which was scheduled to meet on October 4, today met to discuss issues related to spectrum since Fernandes was not present in the group