DoT, Defence end stalemate on spectrum

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In a move that will allow the Government to auction 3G spectrum for at least four operators in each circle, the Department of Telecom and the Ministry of Defence have struck an agreement whereby the armed forces will release 25 Mhz of radio frequency.

In return, the DoT has given a seven-point action plan including getting the approval of the Cabinet Committee of Economic Affairs for setting up an optical fibre cable for the Defence at a cost of Rs 10,000 crore.

The DoT has also agreed to build this cable network in three years, six months ahead of the earlier plan.

According to the deal worked out by Mr Sam Pitroda, Advisor to the Prime Minister, the agreement between the DoT and the Defence for spectrum vacation is likely to be signed by December 7 after the DoT seeks the Cabinet nod on December 3.

The Defence Ministry has, however, set a condition that operators winning the 3G bids will be allowed to use the spectrum only from June 2010. The DoT has agreed to this condition as the operators would anyway take at least four months to roll out services after getting spectrum.

"The Ministry of Defence conceded that it is in the interest of the country to introduce 3G services early and agreed to the suggestion made by Mr Pitroda for quick release of 25 MHz spectrum under its usage."

The DoT Secretary, Mr P. J. Thomas, has sent a detailed action plan to the Defence Secretary, Mr Pradeep Kumar, for building the cable network. A mission team will be set up under the BSNL Chairman with one representative each from the Defence Ministry and the DoT. The roll-out will be monitored by a committee chaired by the Cabinet Secretary once in two months. The Empowered Group of Ministers, headed by the Finance Minister, will also monitor this project every quarter.

"I hope this course of action provides adequate comfort to the Defence Ministry and enable it to release 25 Mhz spectrum for 3G auction by December 7, 2009," said the letter from Mr Thomas.

Taken from Business Line