Court asks DoT to explain 3G policy

The drama over the third-generation, or 3G, telecom services policy took a new twist today with a Delhi High Court Bench headed by the Chief Justice A P Shah directing the Department of Telecommunications (DoT) to file an affidavit explaining why it cannot auction all the available blocks of spectrum in the upcoming auction of 3G spectrum.

The direction came in response to a Public Interest Litigation (PIL) filed last month by an NGO, Society for Awareness and Development. DoT has to file the affidavit by 21 January.

DoT had decided to auction up to five blocks of 5 Mhz each per circle or service area, a recommendation it has included in a note awaiting submission to the cabinet.

The NGO had alleged that DoT has restricted the auctions despite recommendations from the Telecom Regulatory Authority of India (Trai) to auction all the blocks available with the government as well as potential spectrum that might be vacated in the near future (including defence spectrum).

In all, about 25 Mhz of spectrum will be up for auction for 3G services against an availability of 60 Mhz, by DoT’s own admission.

The 3G policy, however, is not on the agenda of the Cabinet Committee of Economic Affairs (CCEA) meeting scheduled tomorrow.

DoT is awaiting formal approval from the department of legal affairs on whether it has to refer a second round of changes to the base auction price to Trai once again before presenting it to the cabinet.

Today’s court directive could delay the launch of 3G services, with the auction likely to take place only in March, the third re-reschedule, owing to differences between DoT, Trai and the finance ministry over pricing of spectrum, the radio frequencies that enable wireless communication. Both DoT and Trai, however, said the court case will not disturb the 3G policy consultation process in the CCEA.