EGoM defers decision on spectrum refarming

Telecom Minister Kapil Sibal said an Empowered Group of Ministers deferred a decision on the contentious spectrum refarming issue as "there wasn't enough time."

The EGoM was to take a view on the Telecom Commission recommendation that mobile phone firms give up all their spectrum/airwave holdings in more-efficient 900 mega hertz band when their permits come up for renewal starting November 2014.

The telecom operators can bid for the airwaves in an auction next year, or can buy replacement airwaves in the less efficient 1800 MHz band, the TC headed by Telecom Secretary R Chandrasekhar had recommended yesterday.

The GSM industry is opposed to this refarming or substitution of their 900 MHz airwares with inferior quality 1800 MHz band spectrum saying it will cost them over Rs 1,00,000 crore in buying replacement airwaves in an auction as also building more mobile masts and replacing some of the existing gears to continue services.

"We intend to take a decision on the refarming issue prior to start of auction (of spectrum vacated from cancellation of 2G licences by the Supreme Court)," Sibal said. "Hopefully a week before the start of the auction."

The government plans to begin auction of telecom spectrum on November 12.

"A lot of time was taken by other issues and there wasn't enough time (left) to take a decision immediately on that," he told reporters after a two-hour long meeting of the EGoM.