DoT may seek EGoM nod for three slots of 3G

The Department of Telecom (DoT) is likely to seek approval for auctioning three blocks of 5 MHz each of 3G spectrum pan-India except Rajasthan and North East, from the Empowered Group of Ministers (EGoM) scheduled to meet tomorrow.

According to an internal DoT note, in these two areas, there should be auction of two blocks of 5 MHz of 3G spectrum.

Most importantly DoT wants defence to release 15 MHz more 3G spectrum, which it is likely to place before the Pranab Mukherjee-headed panel tomorrow.

It had earlier planned to auction spectrum to four private bidders, in addition to the state-run firms.

Defence has already released 10 MHz of spectrum for 3G auction.

The note said good auction practices requires that only spectrum that is available should be auctioned or else auction may result in discounted bids causing revenue loss to the government.

DoT says it is the custodian of spectrum and as per its records duly reconciled with Defence ministry in April 2007, 3G spectrum in 1920-1980 MHz band is available for assignments for 3G commercial services.

One block of 5 MHz 3G spectrum already with BSNL/MTNL since August 2008, should be retained by them, the note stated.

The government has fixed the reserve price of spectrum at Rs 3,500 crore for pan-India 3G spectrum and Rs 1,750 crore for Wimax (wireless interned/broadband) and the auction is scheduled to begin from January 14 next year.