The cost of getting telecom spectrum from the defence forces has risen significantly from the estimates worked out more than two years ago, it is learnt.
NEW DELHI: The cost of getting telecom spectrum from the defence forces has risen significantly from the estimates worked out more than two years ago, it is learnt.
According to the latest math, the department of telecommunications (DoT) must foot a bill of around Rs 14,000 crore to set up an alternate optic fibre communications network for the defence forces, up from the initial estimate of Rs 1,200 crore that was subsequently revised to Rs 5,000 crore.
Spectrum is a scarce natural resource essential for providing quality mobile telephony service.
The group of ministers (GoM), which was constituted in 2007 for vacation of defence spectrum, is expected to meet this week to find a solution to the long-pending issue. DoT is expecting 30 MHz of 3G spectrum and 20 MHz of 2G spectrum from the
defence.
In times like these, when austerity is the buzzword, spending Rs 14,000 crore for getting additional spectrum for telecom companies may not be a priority for the government, a source pointed out. DoT must get the cost approved by the Union Cabinet for setting up the optic fibre network for the defence. The optic fibre network is in lieu of the spectrum that defence forces would vacate for the telecom sector.
The increase in cost for getting the unused spectrum vacated from the defence forces may act as a major roadblock for the entire telecom sector, and introduction of 3G (third generation) services in particular. According to a government announcement, the auction process for starting 3G telecom services in India is likely to begin by the end of this year. However, now, a delay looks imminent.
DoT is seeking part of the unused spectrum from the defence forces so that the same could be given out to the telcos, both for 2G (second generation) and 3G services. DoT wanted defence spectrum by constructing an optic fibre network for the Air Force. But the defence ministry’s stand is that an alternate communications system should be in place for the entire forces (Army, Navy and Air Force) before it could vacate any spectrum.
DoT has been in favour of phased spectrum vacation by the defence forces. However, it is believed that the stand of the defence ministry is that there should be no piecemeal vacation of spectrum. That is, Defence wants to vacate its unused spectrum to telcos once the alternate optic fibre network is in place for all the three forces.
As auction for 3G telecom services are expected within months and the number of 2G players have increased rapidly, the government is in a hurry to resolve the spectrum vacation issue.
In India, there are over 300 million mobile phone subscribers, and the number is increasing by 8 million to 9 million every month.
m_nivedita@dnaindia.net
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