Spectrum, mergers await decisions

The 3G auction has already been delayed due to inter-ministerial disagreements over VARIOUS issues.

On top of the telecom sector list is the need to kickstart the much-awaited auction of third generation (3G) spectrum and broadband wireless access (BWA) spectrum, already delayed by over six months. The 3G auction process has already been delayed thrice from its initial schedule due to inter-ministerial disagreements over issues like the reserve price and the number of blocks to be auctioned.

These auctions could draw anywhere between Rs 20,000-30,000 crore for the exchequer. More important, it is expected to push forward the relentless growth in mobile subcriber base, which is projected to hit around 750 million by 2012. It will also give a major fillip to broadband, whose growth has been very slow.

The decision on the auctioning was finally put in the hands of a group of ministers (GoM) which was constituted just a few days before the elections and therefore could not meet at all. The second key issue is the need to resolve differences between the Department of Telcommunications (DoT and the ministry of defence on the question of latter’s vacation of spectrum to enable the telecom sector to grow. The two sides have, after two years of discussion, still not been able to sign a memorandum of understanding.