Following the constitution of an empowered group of ministers (eGoM) by the government to look into the issues pertaining to 3-G spectrum auction, mobile operators are planning to urge the government to broaden its terms of reference to include 2G spectrum matters as well.
The industry?s desperation with 2-G spectrum, which supports the current voice services, stems from the fact that all additional spectrum allocation beyond the start-up 4.4 mhz has been put on hold by the Telecom Disputes Settlement Appellate Tribunal (TDSAT) pending a formulation of a policy by the government. This is hampering the expansion of the mobile operators.
Though a department of telecom-industry has submitted an exhaustive report, suggesting that 2-G spectrum allocation be de-linked from licence and the government conducts auction for the same with a provision that spectrum trading be allowed amongst operators by paying share to the government, the DoT has so far moved very slowly on the whole matter. This comes when there?s broad support from the industry on implementing the report.
The DoT has sought Telecom Regulatory Authority of India?s (Trai) views on the report and the industry fears that the whole process would be quite lengthy and circuitous before any decision is taken on the matter, which would seriously hamper their plans. Operators feel that if the eGoM is also vested with the task of deciding on 2-G spectrum matters, a policy decision on it would come faster.
The government has constituted an eGoM, headed by the finance minister Pranab Mukherjee, to decide the number of slots to be auctioned for 3-G spectrum, the levying of a recurring administrative charge on the winning parties as suggested by the Trai. 3-G spectrum are the airwaves on which mobile services providing for faster data applications and video streaming work. The TDSAT ruling, which barred the DoT to allocate additional spectrum beyond the start-up 4.4 mhz, came last week when it dismissed a Reliance Communications Ltd plea for 1.8-mhz extra spectrum in the Mumbai circle on meeting the subscriber-linked criteria. Earlier, in January, the tribunal had restrained the DoT from allocating spectrum to operators beyond 6.2 mhz.
Later, DoT had sought the then solicitor-general Ghoolam Vahanvati?s opinion whether it could allocate more spectrum to operators on the condition that a new policy, whenever announced, would apply retrospectively to such cases. He opined that there should be no allocation of spectrum beyond 6.2 mhz till the government takes a view
on the spectrum pricing committee?s report.