Auctions for the third generation (3G) spectrum will be held for all four vacant slots across the country when the government kick-starts the process from January 14. This comes following the resolution of a squabble between the telecom and defence ministries over 25 MHz spectrum that was mediated by the Prime Ministers advisor on infrastructure,Sam Pitroda. The defence forces will vacate the spectrum on December 7. Sources said Pitroda convinced the defence forces to release the spectrum by committing that its alternate optic-fibre network would be fast-tracked. The defence forces had dragged their feet as they apprehended the network would be delayed for lack of funds. However,the telecom commissionthe apex policymaking body of the department of telecommunications (DoT)on Monday approved the Rs 8,000-crore optic-fibre project,which the Cabinet Committee on Economic Affairs is scheduled to take up early next month. Resolution of the issue is significant,as a shortage of spectrum would have hampered the entire 3G auction process and allocation of spectrum,especially in circles like Delhi. The plan is to have five operators in each circle for 3G services,with one reserved for state-owned BSNL or MTNL. Pitroda essentially split the entire issue into two partsshort term and long term-and set milestones. He made it very clear that the Prime Ministers Office wanted the auctions to be held on time and for this,defence must vacate spectrum and will be duly and timely compensated, an official privy to the process told FE. The short-term goal is to ensure that spectrum is vacated,that the optic-fibre network is put on track and that auctions are held on time. Long-term issues relating to the creation of a dedicated spectrum band for defence is likely to be discussed in January. As reported earlier by FE,the government roped in Pitroda to help ensure that 3G auctions were held on schedule by expeditiously resolving the long-drawn spectrum vacation issue between DoT and the defence ministry. This was done after communications & IT minister A Raja had expressed apprehension that the auctions could be delayed as a result of the spectrum shortfall.
