DoT for Plan panel views on efficient use of spectrum

The Department of Telecommunications (DoT) has sought the views of the Planning Commission on how to efficiently use spectrum. This follows a report by the Telecom Regulatory Authority of India (Trai), ‘Spectrum Management and Licensing Framework’, which suggested more consultations on spectrum management.

“We have received a request from the DoT and are working on this,” said minister of state for planning, Ashwini Kumar. He said the Planning Commission’s suggestions would then be announced to the DoT.

In May 2010, Trai, in its report on spectrum, had said operators should pay for additional spectrum at prices directly proportional to those that prevailed at the 3G auctions held last year. It said new operators should pay commercial rates for spectrum beyond 4.2 Mhz, which they secured with the licences, while other operators should pay extra for spectrum beyond 6.2 Mhz. The recommendations also involve norms for mergers and acquisitions, rollout obligations and spectrum management.

The minister said as part of the 12th Five-Year Plan objectives, the government would soon set up two plants to manufacture semiconductor wafers with a total investment of Rs 50,000 crore.

This would boost electronic hardware production. “The approval has been granted. We will approach the Cabinet for the establishment of two large wafer and semi-conductor facilities, with a cost of Rs 25,000 crore each,” he said. Kumar said the 12th Plan would provide a major thrust on enhancing domestic capabilities of manufacturing electronic equipment.

“After 25-30 years, our import bill of electronic hardware may well exceed the import bill of fuel and oil. That is the extent of mismatch between capacity and demand in the electronic hardware manufacturing area,” he said.

On the electronic hardware demand-supply gap, he said, “Currently, the domestic and export markets for electronic hardware is way below the projected demand.”

He said the ministry of planning and the Planning Commission had taken an in-principle decision to recommend to the government a policy framework for granting preferential access to domestic manufacturers during the procurement of electronic equipment.

“The 12th Plan would envisage an additional impetus to the development of the country’s border regions, in line with backward regions,” Kumar said.