DoT seeks PM’s intervention on spectrum issue

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New Delhi, May 15 : Amid differences with finance ministry over pricing the spectrum for 3G telecom services, the department of telecommunication (DoT) has sought PMO's intervention and requested to convene a meeting between the finance ministry and DoT to reconcile the differences on the issue.

Telecom secretary Siddartha Behura is learnt to have made a request to the Prime Minister's

Office to convene a meeting that will include PMO, DoT, telecom regulator Trai and finance secretary to resolve the controversy over spectrum allocation and pricing.

He said the department is in dialogue with the ministry of finance regarding certain issues relating to guidelines for auction of 3G spectrum and pricing of 2G spectrum.

DoT has also suggested that since recommendations of Trai are involved in the matter, chairman of the regulator may also be called for this meeting.

The issue of 3G spectrum heated up after differences emerged between DoT and Trai as the latter favoured allowing only existing operators for 3G auctioning.

TRAI had insisted that 3G auctions be restricted to existing UAS (universal access service) licensees (2G), by keeping out global bidders, which both DoT and the finance ministry have opposed.

Trai chairman Nripendra Misra had recently also cautioned the finance ministry over the entry of foreign players.

Last month, Trai had rejected DoT’s proposal to reconsider allowing foreign players to offer 3G telecom services, with the regulator saying existing players would be able to roll out network faster.

“As the existing licensees have already made huge investments in infrastructure and their systems are in place, therefore, they would be in a better position to deliver 3G services efficiently at low incremental cost,” Trai had said in its views on Permitting New Entity for 3G Services.

The regulator said that with the number of service providers going up to 13-14 in each circle (according to DoT the number is 9-10), there would be sufficient competition to ensure that the spectrum is priced competitively, discourage cartelisation and offer services that are acceptable in terms of quality and price.