3G auction at a standstill as defence needs remain unmet

The Government's easy hopes of raising Rs35,000 crore through 3G auction, primarily on the back of spectrum released by the defence services, has hit a roadblock as the needs and expectations of the defence services are yet to be addressed.

Reports suggest that a high-level monitoring committee, set up to oversee vacation of spectrum, may soon meet to consider objections of the defence services to the proposed harmonisation of ultra high frequency band 698-806 MHz. This is a 'tactical' band used by defence services all over India.

There is still no movement on a proposal to set up an alternate communication network for the defence forces which could allow some of the spectrum now used by the forces to be vacated.  The network is expected to cost around Rs1,000 crore.

In an agreement signed with the Department of Telecommunications (DoT) in May 2009, the ministry of defence had agreed to release two blocks, each of 5 MHz of spectrum, in the 3G spectrum band. It was only then that an Empowered Group of Ministers (EGoM), headed by finance minister Pranab Mukherjee, decided that the spectrum released by the MoD should also be included in the auction.

The EGoM decided to auction four blocks of 5 MHz spectrum in those telecom circles where 20 MHz or more spectrum was available. And in circles where less than 20 MHz spectrum is available, the number of available blocks should be auctioned

The DoT can release 3G spectrum to five telcos only if the defence ministry releases the blocks. Otherwise, DoT will not have sufficient radio frequencies to accommodate five 3G players.

Meanwhile, the telecom department has written to the cabinet secretary seeking expeditious vacation of airwaves held by the defence forces before the scheduled 7 December auction takes place.

If defence-related issues are not resolved soon, reports suggest the prime minister's office and the empowered group of ministers on 3G may need to step in to resolve the matter.