By BB NAGPAL
Indiantelevision.com Team

(17 August 2009 1:45 pm)

NEW DELHI: The government, which earned Rs 34.55 billion from spectrum fee during 2008-09 and about Rs 9.17 billion in the first quarter of this year, is considering increasing the spectrum fee.

Spectrum fee is charged as a percentage of the Adjusted Gross Revenue of the telecom service providers and is regulated by the Telecom Regulatory Authority of India (Trai).

But the spectrum issue appears to be in a flux. Even as the Empowered Group of Ministers has been asked to examine various issues relating to auctioning of spectrum in view of differences between the Trai and the Department of Telecommunications (DoT), the government has referred to Trai the report of the Committee for Allocation of Access (Global Systems for Mobile Communications (GSM)/ Code Division Multiple Access (CDMA) Spectrum and Pricing. The report was received by the government on 13 May and referred to Trai on 7 July.

Detailed guidelines for 3G spectrum were issued on 1 August last year and some amendments were brought in on 11 September.

The government has decided that the spectrum for 3G services will be conducted through simultaneous ascending e-auction. Spectrum for 2G services will continue to be allocated according to the existing guidelines.

The government it is presently considering issues like amount of spectrum to be auctioned, fixing of reserve price for 3G spectrum, and its allocation.

At present, only the Mahanagar Telephone Nigam Limited (MTNL) and the Bharat Sanchar Nigam Limited (BSNL) have permission to provide 3G services in the country.

While MTNL and BSNL will not take part in the auction for 3G services in the telecom sector, they will pay the matching price of successful bidders.

While MTNL provides the service in Mumbai and Delhi, BSNL provides the services in 100 cities.

One spectrum of 5 MHz has been provided to MTNL in Mumbai and Delhi and BSNL in the 20 service areas.

According to a Memorandum of Understanding between the Department of Telecom and the Defence Ministry, the latter will release spectrum for 2G and 3G service in steps till the completion of the Exclusive Dedicated OFC Network for the Army, Navy and Air Force.