The five-year period of rollout obligations for 3G spectrum licence holders has become an issue between the Telecom Ministry and the Parliamentary panel on information technology.
The panel, which had recommended to review the five-year period in an earlier report, pulled up the Telecom Ministry for “non-compliance.”
The panel had said that the prescribed period of five years for rollout obligations for 3G spectrum as compared to 52 weeks in the case of 2G spectrum would result in the blocking of the scarce resource.
The panel complained that instead of taking the recommendations seriously, the Ministry tried to sidetrack the issue insisting that the rollout obligations cannot be altered as they were part of the notice inviting application.
A report of the panel, tabled in Parliament today, said during the deliberations with the committee, the Telecom Secretary “understood” the desirability of having a “shorter period.” The report added that the Ministry is yet to consider the recommendation. It added that officials were “ignorant” about the international practices in this regard.
“The committee may like to reemphasise that spectrum is a scarce report,” the report added.
The report reiterated the committee's position that the period of five years in case of 3G spectrum would result in blocking of resources particularly with the situation of rollout of 2G spectrum whereby the licences have not rolled out even within the prescribed 52 weeks.
“The committee would also like to be apprised of the basis of fixing five years for rollout in case of 3G spectrum so as to understand the matter in detail,” the report added.
Sources in the panel said the Telecom Secretary would be summoned again to explain the reason for fixing a five-year period for 3G rollout. “We were not satisfied with the Ministry's response,” a member said.
If the DoT agrees to the panel's views it will deal another blow to the telecom companies. Operators with 3G spectrum are already under pressure due to Government's decision to ban roaming services.