Defence spectrum resolution in sight

Spectrum auction to get a boost as defence ministry ready to give up 15 MHz if it gets equal amount in 1,900-MHz band

The logjam between the defence ministry and the department of telecommunications (DoT) over the vacation and swapping of spectrum is close to getting resolved, with communications and IT minister Ravi Shankar Prasad slated to meet defence minister Manohar Parrikar soon.

Prasad, who chaired an internal meeting of the DoT on Thursday on the availability of spectrum for the upcoming auction in February next year, told Business Standard: "Yes, I will be meeting the defence minister so that we can discuss and resolve the spectrum issue very soon."

The move comes a day after sector regulator Telecom Regulatory Authority of India (Trai) chairman Rahul Khullar said publicly that the tussle between the DoT and defence authorities needed a political resolution and the impasse could not continue. He had said that without the defence spectrum being available, there would be a serious shortage of spectrum in the upcoming auction, leading to a "bloody battle" that would hit the telecom industry.

Trai had recommended that to get more spectrum, the defence ministry should give 15 MHz of spectrum in the 2,100-MHz band in exchange for a similar amount in the 1,900-MHz band. That would provide enough spectrum for three operators (5 MHz each) and reduce the pressure in the auction of the 900-MHz band. However, the Telecom Commission had rejected the Trai recommendations, saying it would not be possible to get the spectrum from the defence establishment though discussions were on.

According to sources, the defence ministry is willing to give 15 MHz provided the DoT gives them an equal amount in the 1,900-MHz band, which was earlier reserved for CDMA operators.

It has also made a plea that it could vacate the spectrum on condition that the DoT quickly notified a "defence band" across spectrum, a move hanging fire.

The DoT has now floated a draft Cabinet note on notifying defence bands, in which it would not have to go to the DoT for any permission. But, it is silent on the contentious issue of swapping of 15 MHz in the 2,100-MHz band with that in the 1,900-MHz band. However, the defence ministry and DoT are learnt to have agreed that that while spectrum would be equally divided between them in the 1,700-2,000 MHz band, the issue of shifting of the respective bands and the timeframe can be decided later. It has also been decided to waive the spectrum usage charges, which, if collected, would have resulted in additional revenues of Rs 47,000 crore a year for the government.