Pitroda to negotiate 3G spectrum

Sam Pitroda, advisor to the Prime Minister on public information infrastructure and innovations, now holds the key to the proposed 3G (third generation) telecom auction.
The committee of secretaries (CoS), which was set up to monitor the issue of vacation of spectrum by defence forces and reallocation of that spectrum to telcos, has now referred the matter to Pitroda, it is learnt. Cabinet secretary K M Chandrasekhar was heading the CoS.

Known as a telecom and IT czar for his contribution to the sector during Rajiv Gandhi’s time, Pitroda has been brought to the scene to resolve the spectrum mess, a source said.
The 3G auction process is set to start on November 14 with submission of questions for a pre-bid conference, according to the schedule of the Department of Telecommunications (DoT). The 3G bidding is to start on January 14, 2010, according to the DoT calendar.
But the auction dates may have to be deferred as Pitroda would need time to study the issue, deliberate over the matter with DoT and the defence ministry, and come to a logical conclusion. The finance ministry, which is keen on a quick auction, would also have to be consulted. Pitroda is expected to give a verdict on whether spectrum is available for transfer or not with the defence forces.

At the centre of the problem is the dearth of spectrum that can be allocated to telcos for offering 3G services. While DoT had recently signed a memorandum of understanding (MoU) with the defence ministry for vacation of spectrum, it is believed that the defence forces are not willing to part with the scarce natural resource now.

It is learnt that the defence ministry is arguing that it’s using the spectrum and is insisting on an alternate communication platform before any spectrum can be vacated.  

DoT’s view is that some of the defence spectrum can be vacated now before the 3G auction takes place, while an alternate communication network can be completed later.
Meanwhile, a meeting has been scheduled between the key Cabinet ministers this week on the 3G issue. Finance minister Pranab Mukherjee, communications minister A Raja and defence minister AK Antony are likely to meet on November 11.

For the finance ministry, the 3G spectrum auction is extremely significant. The auction, which has been deferred many times in the past for various reasons, is expected to fetch the government about Rs 35,000 crore. And this money would go a long way in bridging the country’s steep fiscal deficit — 6.8% of the GDP (about Rs 53 lakh crore, at current prices, in FY09).

With the DoT falling under the Central Bureau of Investigation scanner for alleged irregularities in allocation of 2G (second generation) spectrum to some companies, causing a loss of around Rs 60,000 crore to the Exchequer, a section in the government is of the view that sale of 3G spectrum must be kept on hold till the investigation comes to a logical conclusion.

3G systems represent the next step in the evolution of mobile cellular communication.
2G systems focus on voice communication, while 3G systems support increased data communication. They allow high speed data transfer of at least 144 kbps, mobile Internet access, entertainment, and triple-play converged communications services, and have markedly greater capacity and spectrum efficiency than 2G systems.