Defence to release spectrum in time for 3G auction

The ambiguity over availability of 3G telecom spectrum is likely to end soon, as the ministry of defence has agreed to release 25 MHz of third-generation spectrum before 8 December, paving the way for auctioning of all the four slots planned in every circle simultaneously.

However, according to a Department of Telecommunications directive, the successful bidders in the auction would be able to utilise the spectrum only after June 2010, despite the auction process happening on schedule in January.

"We will ensure the winners in the 3G auction start using spectrum only after June 2010...as the armed forces would need time to shift operations which might be possible only by June 2010," DoT Secretary P J Thomas said in a letter dated 10 November to defence secretary Pradeep Kumar.

In the order to release the 25 MHz of spectrum in the 1920-1980 MHz band, the defence ministry had asked for timely completion of the optical fibre network by Bharat Sancham Nigam Ltd to replace the spectrum loss, the telecom secretary said.

DoT has instructed BSNL to complete the alternate optical fibre network for the army, navy and air force in three years instead of the earlier three and a half years. DoT would circulate a cabinet note on this next week. The OFC network, estimated to cost Rs10,000 crore, would be implemented as a mission-mode project, with BSNL chairman and managing director Kuldeep Goel as mission director and one representative each from the defence and DoT on the team, the letter added.

The decision was apparently also approved by the EGoM meeting on 19 November (inevitably headed by finance minister Pranab Mukherjee), which had met to resolve differences between DoT and the ministry of defence over vacation of spectrum. Prior to this, a meeting under Sam Pitroda, scientific adviser to Prime Minister Manmohan Singh, was held with DoT and the MoD.