The Department of Telecommunications (DoT) and the ministry of defence are expected to finalise the memorandum of understanding (MoU) on the modalities for spectrum vacation on Monday.
Once the MoU is signed, Defence forces would vacate 10 MHz of spectrum, which can be utilised by mobile phone firms for offering third generation (3G) telecom services.
Vacation of any spectrum (2G or 3G) beyond 10 MHz would take time.
Sources say the total of 45 MHz of spectrum that DoT has asked for is likely to be vacated by the forces in phases over 3-4 years, and will depend on how quickly DoT is able to build the alternate fibre optic communication platform for the forces in lieu of the released spectrum. The platform will cost DoT an estimated Rs 14,000 crore.
Despite vacation of 10 MHz of 3G spectrum by the forces, it is learnt that auction for 3G spectrum will not be held during the current UPA regime.
The auction was scheduled for January, but the Union Cabinet referred the matter to a group of ministers (GoM) recently.
There is yet another GoM on spectrum, set up more than two years ago to decide on vacation of unused spectrum by Defence forces.
Sources said the two GoMs, both headed by external affairs minister Pranab Mukherjee, are likely to be merged into one.
But, even that may not hasten the process of 3G auction as general elections would be held in April-May. While one view is that the election code of conduct may act as a hurdle for 3G auction, a section believes telecom companies would like to wait for the next government to come in before investing huge amounts in the bid process.
Interestingly, communications minister A Raja had said recently that 3G auction would be held before March 31.
Meanwhile, DoT is on an overdrive to clear the backlog of applications for 2G (second generation) licence and spectrum by the end of this financial year. In contrast to the scenario where a telecom player had to wait in queue for months to get a licence and its share of spectrum, the wireless division of DoT has now told telcos that all efforts are being made to ensure that completed applications are processed/ examined and the decision letter/ licence issued within 10 working days.
The Wireless Planning & Coordination Wing is at work to clear the backlog of pending applications latest by March 31, a note issued by the department said. As for renewal of licences, applications would be cleared within five working days.
Also, the Wireless Advisor has decided to meet wireless users (mobile telephony companies) without any prior appointment every Friday for “speedy disposal of pending cases.”
