The telecom sector is a successful symbol of the reforms unleashed in 1991 and is moving ahead at full steam. But there are problems at the policy level which threaten to stall the progress. Controversy and delay continue to plague the much delayed 3G auctions but interestingly enough it is in fact the normal voice services or 2G?which all of us use, which may be at risk if remedial steps are not taken fast.

What has largely gone unnoticed is that the allocation of 2G spectrum has come to a halt in the recent past on the orders of a telecom tribunal, which instead of ad-hocism wants a policy, and the department of telecommunications (DoT) is dragging its feet on it. This could end up compromising the quality of services that are being offered even with 2G. For the uninitiated, spectrum is the basic raw material for mobile operators?the airwaves on which the signals travel.

So far, allocation of 2G spectrum was done on the basis of the number of subscribers an operator had. But with several allegations of gold-plating as well as allocating more to a few based on administrative orders as against licence conditions, a committee was set up last year to recommend a thorough overhaul. The committee has submitted its report, which has wide industry support as it has said that licence and spectrum should be de-linked, all 2G spectrum be auctioned and trading in spectrum be allowed.

Among other issues, simple matters like having a uniform licence fee as against the current structure which ranges between 6-10% of the adjusted gross revenue of operators depending on the circles, has been left unattended for the last three years. As a result most of the big operators are currently being audited by the government to see whether they paid the right licence fee. Irrespective of the outcome if a simple rationalisation had been done on time there would have been no need to carry out such an arduous task on taxpayers? or shareholders? money.

But DoT seems to have chosen to go slow on these issues choosing instead to, ironically, focusing on 3G before sorting out 2G issues.

?rishi.raj@expressindia.com