MoD-DoT reach agreement over spectrum vacation

Following an agreement reached between the Department of Telecom (DoT) and the Ministry of Defence (MoD), the armed forces will release 25 Mhz or radio frequency while the DoT will set up an optical fibre cable for the MoD at a cost of Rs10,000 crore. The agreement will enable the government to move forward with its plan to auction 3G spectrum to at least four operators in each circle. 

The DoT has also agreed to build the network in a period of three years which is six months in advance of the earlier plan. 

According to the deal worked out by Sam Pitroda, advisor the prime minister, the agreement for spectrum vacation would be signed by 7 December with DoT seeking the go ahead from the cabinet on 3 December. 

The MoD has however, agreed to the spectrum vacation on the condition that successful bidders would be allowed to use the spectrum only from June 2010. The DoT has agreed to the condition since the operators would in any case take four months to roll out their services after allocation of spectrum.

The agreement provides for the forces to release up to 45 MHz of radio frequencies over a three-year period, of which 25 MHz would be for 3G services. The rest of the spectrum would be for 2G, the airwaves on which all communications services in the country are currently offered.

Meanwhile DoT secretary, P J Thomas has sent a detailed action plan to the defence secretry, Pradeep Kumar for the setting up of the cable network. A mission team will be set up under the BSNL chairman with one representative from each from the defence ministry and the DoT. The roll-out would be monitored by a committee chaired by the cabinet secretary once in two months and the Empowered Group of Ministers, headed by the finance minister would also monitor the project every quarter.