CBI probing why DoT went back on cap

The spectrum scam is acquiring new dimensions. The CBI has begun investigating what led the department of telecommunications to suddenly reverse its policy of not limiting the number of licences after granting 121 new licences to eight new operators. The answer to this question may once again embarrass communications & IT minister A Raja.

The enquiry into this aspect is significant because the DoT, in its affidavit to the Delhi High Court, had stated that the remaining 343 applications, filed between September 26 and October 1, 2007, have not been rejected and will be processed subsequently. Interestingly, the court had struck down the DoT?s arbitrary decision advancing the cut-off date from October 1, 2007 to September 25, 2007 as illegal.

Despite giving the undertaking to the court that the remaining applications would be processed later, the DoT in July sought the Trai?s opinion whether these applications should be processed, as spectrum is scarce.

This is what the DoT said in its affidavit to the Delhi High Court: ??.it is respectfully submitted that government has not rejected the remaining 343 applications filed within the period of 26.09.2007 and 1.10.2007. Further proceeding of UASL shall be considered subsequently in terms of government policy.?

However, in July, AK Srivastava, DDG, DoT, wrote to the Trai: ?In view of the fact that sufficient competition seems to be already in place and spectrum is a scarce resource and to ensure that the adequate quantity of spectrum is available to the licensees to enable them to expand their services and maintain the quality of service, the government is to take a view on the policy of no-capping on the number of access service providers in each service area in terms of pending applications for grant of new UAS licences received from 26.09.2007 to 01.10.2007.?

Later, Trai brought a consultation paper on October 16, inviting stakeholders? comments to formulate a fresh policy on the subject.

Justifying its stand, the DoT quoted a TDSAT judgment which had observed in March, 2009: ??As indicated by Trai itself, there are six to nine operators in each service area and there is demand for additional spectrum…

?…It is therefore puzzling as to why Trai recommended a no-cap policy on the number of service providers. In our view, DoT would be well advised to review this policy?.

Interestingly, the quotation from the TDSAT judgment is out of context because the case related not to the fate of the balance applications but to the dual technology policy by which the government had granted the GSM spectrum to CDMA operators like Reliance Communications and Tata Teleservices.

Legal experts maintain that the whole controversy could throw up legal complications for the government. The pending applications were in the context of a prevailing government policy, and an assurance about processing them was given to the court. If at all a new policy is formulated and applied to the pending applications, the affected parties could move court, causing embarrassment to the government.