'Top up blocks to help new entrants in 2G auction'

The telecom minister will take up the issue of ECB refinancing for 2G auction bidders with the finance ministry. The Department of Telecommunications (DoT) has clarified that there will be no adjustment of cancelled entry fee with bid dues. There will also be no provision for re-auctioning if bids are lower than the reserve price.

In an interview with CNBC-TV18, R Chandrashekhar, Telecom Secretary said, "The question of a sector cap is much more complex and that's a major policy decision because the decision for a 74% cap was arrived at a particular point in time and notified somewhere around 2007 or so. It took into account not only the views of the telecom department and the finance ministry but, also the views of the security agencies and the ministry of home and so on. At this moment and within the time frame of the auction, perhaps that is not something which is on the agenda at all."
The total amount of spectrum that is going to be made available for auctions has been increased, as far as adding three top up blocks is concerned. However, things remain the same and going forward, telecom companies continue to complaint that there is a scarcity of spectrum and artificial scarcity of spectrum which the government has created.
Chandrashekhar clarified that the additional blocks will only act as contingency arrangements for favouring the new entrants. He explained, "The three topping up blocks are actually a contingency arrangement and the blocks are essentially to prevent a new entrant from being knocked out in the auction process even when spectrum remains unsold within the 8 blocks."