The Department of Telecom will ask telecom regulator to give its recommendations for pricing 3G and 4G spectrum to include it in the next round of auction in February next year.
The DoT wants to sell at least 5 MHz spectrum in the 3G band and between 20 MHz and 40 MHz in the 4G band. The move is aimed at generating additional revenue for the Government.
As of now, the DoT is clear about selling spectrum in the 1800 MHz and the 900 MHz bands. However, the Finance Ministry wants spectrum in the 2100 MHz , 2300 MHz and 2500 MHz bands also. While 2300 MHz and 2500 MHz bands are used for 4G services, the 2100 Mhz is used for 3G.
But the problem is that the Defence forces are yet to vacate spectrum in the 3G band. They want DoT to fulfil all the commitments made in an agreement signed in 2009, including rolling out a dedicated optical fibre network. Though the 4G spectrum is available to be sold, it may not attract too many bidders owing to its poor propagation properties. Most of the operators which bought spectrum in this band in 2010 are struggling to launch services. On the other hand, 3G spectrum band is much sought after especially because none of the existing players have pan-India 3G footprint.
Finance Secretary Arvind Mayaram has asked the DoT to quickly resolve all outstanding issues with the Defence forces in order to get 3G spectrum vacated.
Mayaram, in a letter to the DoT, said the Defence Ministry has indicated it was willing to give up 15 MHz of spectrum in the 2100 MHz band if the DoT fulfils its commitment under a 2009 agreement.
The Finance Ministry is keen to get this spectrum so that it can be sold in the next auction round, scheduled for February.