DoT, defence finalise MoU for spectrum

The department of telecommunications (DoT) and the defence ministry have finalised a draft memorandum of understanding that lays the roadmap for vacation of as much as 25 MHz spectrum for current and third-generation telecom services.

The move came as the group of ministers set up to sort out the spectrum issue met today. Under the plan, defence forces would vacate 10-15 MHz 2G spectrum by January 2008 (varying from circle to circle) and another 10 MHz (except in the North-East) by April 2008, making available 25 MHz spectrum in each circle. Only in Delhi and Mumbai, where there is an urgent need for more spectrum, will 5 MHz be vacated immediately.

This may be a bonanza for the new players who have applied for licences as the Telecom Regulatory Authority of India's (Trai's) recommendation for doubling and in some cases trebling the number of subscribers needed to get additional spectrum will keep most existing operators out of reckoning in case the DoT accepts the proposal.

The defence ministry will vacate 10 MHz 3G spectrum by January 2008 (except in Delhi and Mumbai, were it will vacate 20 MHz) and between 5 MHz and 15 MHz by April 2008 (this varies from circle to circle). With this, between 15 MHz (enough for three 3G operators) to 30 MHz (enough for six 3G operators) will be vacated.

This could well mean that 3G services, which were expected to be rolled out in July this year, would be available only by the first quarter of 2008. In return, the DoT will complete the phase I of the optic fibre link "" an alternate channel for use by the air force after it shifts from the wireless communications system ""by December 2007. The second phase will be completed by March 2008.

The draft agreement mentions the responsibility of each department in meeting the targets. BSNL has to complete the cabling work for the new fibre link by September 2007 while the DoT will take steps to get the approval of the Telecom Commission and the CCEA for sanction of Rs 1040.16 crore for the first phase of the project.