Column : This is no defence, minister

Thu, Oct 22 11:41 AM

It isn't the possibility of deferred 3G spectrum auctions but the reason cited by A Raja for deferring the auctions that is a surprise. The ministers says that since the ministry of defence has not vacated the 3G spectrum, the department of telecommunications might not be able to conduct the auction in the current fiscal. 3G spectrum has become jinxed. At a time when the entire world is moving on to the next technology platform of LTE, 3G still hasn't seen the light in India.

Right from the time the auction guidelines were announced by Raja in August last year it was public knowledge that the DoT had around 60 Mhz spectrum in the 2.1 Ghz band and that defence would have to vacate more 3G spectrum and move on to the optic fibre network that the state-run telecom operator BSNL has been asked to construct. Meanwhile, the government would conduct the 3G spectrum and the Broadband Wireless auctions. After the empowered group of ministers gave its verdict that a total of five slots would be auctioned for 3G services (four to private operators and one reserved for BSNL/ MTNL in each circle), it became very clear that only a few operators in a handful circles would have to wait for a while until spectrum was freed.

With the reserve price issue resolved and the markets also looking up, foreign operators have evinced interest in participating in the auctions, which by now is the only route for them to enter the Indian telecom market. And finally a short-term paucity of spectrum in a few circles especially in a lucrative circle like Delhi would ensure an even more aggressive bidding and thus even a higher revenue realisation for the government. It is in this background that Raja's latest excuse of lack of spectrum and pointing an accusing finger at the defence ministry comes as a googly since they are hardly issues for delaying the auctions. It would have made better sense for Raja to stand up and say since the Trai has decided to come out with a consultation paper to iron out 2G matters and that could delay auctions. That would have sounded more logical.

—anandita.mankotia@expressindia.com

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