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ShareNew Delhi: The Union Cabinet meeting on December 3 is expected to be critical for the future of 3G (third generation) spectrum auction, it is learnt. The meeting is likely to give a clarity on the quantum of spectrum available for 3G services and the number of 3G slots that can be allocated across circles.
An empowered group of ministers (EGoM) headed by finance minister Pranab Mukherjee wants the defence forces to vacate the committed spectrum by December 7.
Currently, four 3G slots are available in some circles, while a few others have only two or three 3G slots. Two circles won't hold any 3G auction as per the DoT schedule. The disparity in the number of 3G auction slots is due to dearth of spectrum in many circles.
Vacation of spectrum by the defence forces would enable uniform 3G auction across the country. The EGoM met on Thursday to resolve the issue of spectrum vacation by Defence Forces, so that 3G auction can be held as planned during this financial year. The Department of Telecommunications (DoT) had recently announced that 3G spectrum auction would begin on January 14, 2010.
Although DoT and the Defence Ministry are still in discussion to iron out their differences on vacation of unused airwaves by the Forces that can be allocated to telcos for 3G service, the EGoM is learnt to have asked the Defence Ministry to stick to its MoU on the matter.
The MoU signed between the DoT and Defence earlier this year had specified that the Forces would vacate 25 MHz of 3G spectrum and 20 MHz of 2G spectrum in phases.
Besides Mukherjee, the EGoM includes the communications minister A Raja, defence minister A K Antony, law minister Veerappa Moily, information and broadcasting minister Ambika Soni and home minister P Chidambaram.
Advisor to the prime minister on public information, infrastructure and innovation Sam Pitroda was recently appointed as the key negotiator for vacating spectrum from the defence forces. Despite several roadblocks on the way to the 3G auction, the government wants to hold the bidding process this financial year.
The government expects to garner around Rs 35,000 crore from 3G auction, and would go a long way in bridging the steep fiscal deficit of India. The pan-India reserve price for 3G spectrum has been fixed at Rs 3,500 crore and that for broadband wireless access at Rs 1,750 crore.
