Third generation (3G) mobile service providers may not get more spectrum in the near future.

That's because the Department of Telecom has agreed to give a large chunk of the 3G frequency band to the Defence forces as part of deal done to streamline spectrum usage.

Airwaves in the 1920-1980 band are considered to be ideal for 3G services. But 34 units in this band have now been given to the Defence as part of an exclusive band. Defence wants to deploy 3G technology for its own internal communications. Of the remaining 25 units, the DoT has already sold 20 Mhz to telecom companies for 3G services in 2010.

This leaves the DoT with only 5 Mhz in some circles. The decision was conveyed to a Group of Minister by the Wireless Planning & Coordination wing.

This has huge implications for existing 3G players as they won't get any additional spectrum for some time. In the first round of auction conducted in 2010, none of the bidders had won airwaves across the country. Those who won got only 5 Mhz in each circle which is proving to be too little for high speed data services.

Also, with the Government disallowing 3G players to do intra-circle roaming agreements, operators hope to go pan-India will get dashed. For instance, an operator like Airtel could now be restricted to only the 13 circles it won spectrum. 3G players will have to wait till the Government finds more airwaves in other frequency bands including possible refarming of 900 Mhz. This could take time as refarming is a complex exercise.

The scarcity in 3G airwaves could, therefore, hasten the move towards 4G services because fresh aiwarves in this segment are being vacated.

The entire 700 Mhz band is being vacated by the Ministry of I&B which will then be put up for auction this year.

> tkt@thehindu.co.in

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