Group of ministers may decide on 3G spectrum allocation

The government is likely to refer the issue of participation of foreign companies and new domestic companies in the 3G spectrum auction to an empowered group of ministers (eGoM) for a final decision as differences between the Telecom Regulatory Authority of India and the department of telecom (DoT) persisted.

The Attorney General of India also seems to be in favour of setting up a group of ministers (GoM) to decide on the third generation telephony, which allows faster data transfer.

TRAI had cautioned DoT against taking any decision against its recommendation, saying that such decisions might lead to legal complications in the future. 

DoT and communications minister A Raja are keen to open the 3G auction process to all players and claim to have the blessings of finance minister P Chidambaram on allowing foreign players to participate in the auction.

TRAI chairman Nripendra Misra had written to the finance ministry to drop its demand for a global auction. Raja had met Chidambaram on this issue last week and said that there was a 'broad consensus between both ministries on 3G', implying that foreign players would be allowed.

The government had, in September 2005, set up a GoM under the chairmanship of external affairs minister Pranab Mukherjee to look into the issue of additional frequency from defence services. So far, this GoM has met only once.

DoT had been forced to refer the issue to the AG following stiff opposition from the TRAI. This was mainly to avoid legal complications and to seek clarification on whether foreign companies which do not hold telecom licences in India can be allowed to bid for 3G.