The government plans to defer the auction of mobile phone spectrum in the 900 MHz band with the Department of Telecommunications (DoT) finally veering around to the defence ministry's view that refarming of these premium airwaves would hit the communication network of the armed forces.
The wireless adviser in DoT has told representatives of the defence ministry that "though Trai (Telecom Regulatory Authority of India) has recommended refarming of 900 MHz band, there are no plans of DoT to immediately adopt it", according to the minutes of the inter-ministerial meeting held in September.
Representatives of the defence forces have also conveyed that the proposed move to allow wider use of 800 MHz by GSM operators "is not agreeable as it will infringe on the defence band". Currently, this band is used only by CDMA players.
A DoT official said that the defence ministry fears that any change in the current set-up in 900 MHz or 800 MHz band would cause trouble in its communications network.
"They have asked for more time from us so that they can adjust their network accordingly," a telecom ministry official said.
The official explained that refarming or auctioning of 900 MHz or changing the natural composition of 800 MHz spectrum band for GSM could affect the communication network of the armed forces.
As there is no demand for 800 MHz band from CDMA operators, Trai has recommended that this band should also be offered to GSM players. This would increase competition and result in a higher price in the auction. However, owing to the protest by CDMA operators such as Russia's SSTL, the Centre is avoiding the issue and wants the next government to take a call.
The government had fixed an ambitious revenue target of Rs 40,847 crore from auctioning of 900 MHz and 1,800 MHz spectrum and other fees from telecom companies this fiscal. However, the target seems unachievable now. The government was expecting to fetch Rs 11,870 crore from auctioning 900 MHz alone in the January auction.
Around 15 MHz of the 900 MHz band spectrum has to be refarmed in Delhi and Mumbai and 12.5 MHz in Kolkata as it comes up for renewal next year.
Currently, Bharti Airtel, Vodafone and Idea Cellular own 900 MHz spectrum and their licences are due to expire next year.
The 900 MHz band is considered to be an efficient spectrum as it requires fewer towers than those required for 1,800 MHz.
Most other operators largely operate on the 1,800 MHz band.
In association with Mail Today 
Special 
