DoT defers 3G spectrum auction

The department of telecommunications (DoT) has postponed a planned auction of third generation radio spectrum (3G) as the cabinet has failed to clear its policy proposals relating to the high-end mobile phone service.

Auctioning of the 3G spectrum, which was scheduled to be kicked off on 16 January, will now be held after the union cabinet clears the DoT's 3G spectrum policy.

The government extended the last date for receiving applications for 3G spectrum from 5 January to 20 January, for want of government clearance of the policy proposals.

DoT had sought the cabinet's approval on higher 3G spectrum charge and number of blocks to be auctioned in each circle.

While the Telecom Commission had discussed the issue at its meeting on 19 December, the decision to seek cabinet nod was taken as a precaution in view of the allegations during the allocation of 2G spectrum and new licences in January this year, sources said.

The decision is believed to have been taken in the background of feedbacks received from prospective bidders during the pre-bid conference on 23 December.

Reports, meanwhile, attribute the decision to the absence of foreign bidders in the pre-bid conference. The government wants to give them more time because of the confusion over 2G spectrum availability.

In case the approval was delayed beyond January 2009 the entire process of auctioning of 3G spectrum and start of high-end mobile services may get derailed as the government may get into general election mode.