CVC seeks clarity on 2G spectrum allocation

Unhappy with the reply of the Department of Telecommunications (DoT), the Central Vigilance Commission (CVC) has shot off another letter seeking clarity on the policy for allocation of spectrum to existing 2G mobile services.

“(The) reply furnished by the DoT is not specific about the methodology adopted for assessment of optimum use of allotted spectrum and the precise manner of application of methodology,” the CVC said in its letter to the DoT last week.

The CVC wanted to know whether auction process for 2G spectrum is the right choice and desirable at this juncture.

Communications and IT Minister A Raja has been in the line of fire ever since he distributed 120 new telecom licences last year along with start-up spectrum of 4.4 MHz at a cost of just Rs 1,651 crore each, compared to its market value running several times of this amount.

While allocating spectrum, Raja had said that since the existing GSM operators have been given frequency at the same terms and conditions, including prices, even in 2007 auction, new prices cannot be introduced for new players.