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| FinMin asks DoT to put on hold allocation of extra spectrum |
| Press Trust of India / New Delhi Aug 17, 2009, 17:55 IST |
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The Finance Ministry has asked the Department of Telecom (DoT) to put on hold further allocation of spectrum till a final view on Spectrum Review Committee's report is taken, a move that may affect expansion of services by existing players like Airtel and Vodafone.
The spectrum committee, headed by Additional Secretary in DoT, has given its report on whether the existing players can get spectrum beyond 6.2 MHz and the pricing of 2G frequency.
In a letter to Telecom Secretary Siddhartha Behura, Finance Secretary Ashok Chawla said, "It may be ensured that no further allocations of spectrum are made by the DoT, until a final view had been taken on the recommendations of the report."
He further said that since the proposed indexation of 2G spectrum prices to the derived price of 3G auction, it would also be necessary to conclude urgently the process of auction of 3G spectrum, before giving effect to the report's recommendations.
The Telecom Disputes Settlement Appellate Tribunal (TDSAT) in a ruling in March this year had categorised all spectrum allocated beyond 6.2 MHz as illegal and had asked the DoT to finalise views on the issue within a month of committee submitting the report.
Chawla asked Behura to convene the meeting of the Telecom Commission at the earliest to discuss the recommendations of the Spectrum Review Committee.
The spectrum review committee in its final report has proposed auction of all 2G spectrum beyond 4.4 MHz in the case of existing operators and auction of all spectrum for any new licences granted. It has, however, not recommended withdrawal of any excess spectrum.
The report needs the approval of the Telecom Commission, the apex policy-making body of the DoT.
Chawla said, "The recommendations of the report have been studied in detail and we are eagerly awaiting the notification, from your side (DoT), of the meeting of the Telecom Commission where the report shall be considered and discussed."
He further said, "...There is need to urgently conclude the deliberative process with regard to the report's recommendations and thereafter enable the competent authority to take an informed decision there upon."
The move would impact the existing mobile operators like Bharti Airtel, Vodafone-Essar, Idea Cellular, and Reliance Communications who have sought 2G spectrum beyond 6.2 MHz in certain circles. These operators will have to wait till the telecom committee takes a final decision on the report of the spectrum committee.
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