FinMin asks DoT to hold allocation of 3G spectrum

The finance ministry has asked the Department of Telecommunications (DoT) to put on hold the further allocation of spectrum until a final view on the Spectrum Review Committee’s report was taken, a move that might affect the expansion of services by existing players like Airtel and Vodafone.

The spectrum committee, headed by additional secretary in DoT, has given its report on whether the existing players can get spectrum beyond 6.2 MHz and the pricing of 2G frequency. In a letter to Telecom Secretary Siddhartha Behura, Finance Secretary Ashok Chawla said: “It may be ensured that no further allocations of spectrum are made by DoT, until a final view had been taken on the recommendations of the report.”

He further said, since the report proposed indexation of 2G spectrum prices to the derived price of 3G auction, it would also be necessary to conclude urgently the process of auction of 3G spectrum, before giving effect to the report’s recommendations.

The Telecom Disputes Settlement Appellate Tribunal (TDSAT) in a ruling in March this year had categorised all spectrum allocated beyond 6.2 Mhz as illegal and had asked DoT to finalise views on the issue within a month of committee submitting the report.

Chawala asked Behura to convene the meeting of the telecom commission at the earliest to discuss the recommendations of the Spectrum Review Committee.

The committee, in its final report, has proposed auction of all 2G spectrum beyond 4.4 Mhz in the case of existing operators and auction of all spectrum for any new licences granted.