The controversial allocation of spectrum for telecom operators may have a new mediator: Prime Minister Manmohan Singh. The vexed issue, which has the department of telecommunications (DoT) and the Cellular Operators? Association of India (COAI) at loggerheads, is currently before the Telecom Disputes Settlement & Appellate Tribunal, and will come up for hearing again on Nov 12.
An internal note from the Prime Minister?s Office said the review of spectrum issues was high on the PM?s agenda. Sources said that Singh would review progress on the vacation of spectrum by the defence services for use by telecom operators, as well as on additional allocation to existing operators, and whether that spectrum should be auctioned or allotted under existing norms.
The allocation of additional spectrum has stirred a hornet?s nest. DoT recently enhanced the subscriber base norms by two to five times for operators to be eligible for additional spectrum. The move severely hits the spectrum claims of existing GSM operators like Bharti Airtel, Vodafone Essar and Idea Cellular.
Another bone of contention is DoT allowing operators to use dual technology under their existing licences on payment of an additional licence fee. The move is seen as favouring Reliance Communications. Essentially a CDMA operator, RComm?s launch of GSM services pitchforks it to the head of the queue for scarce spectrum.
Communications & IT minister A Raja defended DoT?s decision and said further spectrum allocation would be after the TEC submits its report.