Date:27/06/2009 URL: http://www.thehindubusinessline.com/2009/06/27/stories/2009062751410400.htm

Back 3G policy goes back to GoM on PMO orders

Quick decision likely as auction is on 100-day agenda.

Our Bureau

New Delhi, June 26 The Prime Minister’s Office has asked the Communications and IT Ministry to refer the policy on third generation mobile services to a Group of Ministers on IT headed by the Finance Minister, Mr Pranab Mukherjee.

The move is in line with the decision of the Cabinet Committee on Economic Affairs under the previous Government. In March, the CCEA had told the Department of Telecom (DoT) to discuss the policy in the GoM, but it could not proceed due to the general elections.

The DoT favoured taking its proposals on 3G auctions to the Cabinet again instead of to the GoM in a bid to push for a quick decision. The Communications Minister, Mr A. Raja, had said that he was not sure if the issue should be taken to the Cabinet or the GoM.

The PMO’s order brings clarity on the issue of who the final authority will be on 3G policy.

The auction was earlier scheduled to be held in January but was postponed due to differences between the various Ministries on the issue of pricing of 3G spectrum auction and the number of players to be allowed in a circle. While the Finance Ministry wants a higher base price at Rs 4,040 crore, the DoT wants it to be under Rs 3,500 crore. There is also a difference of opinion on the number of slots, with one side wanting it to be restricted to five while the other wants as many as eight operators to be given 3G spectrum.

Last week, the Government sources had indicated that a compromise may have been reached on the issue with the DoT likely to toe the Finance Ministry’s line. The Government has included 3G auction in its first 100-day agenda and therefore the GoM has been told to decide on the policy quickly.

The Finance Ministry is also keen to resolve the issues fast so that it can include revenues from selling spectrum in the upcoming Budget on July 6.

According to DoT’s estimates, the Government should get in excess of Rs 35,000 crore by auctioning 3G and broadband wireless access spectrum. The GSM-based mobile players have also sought clarity on 2G spectrum allocation before auctioning 3G radio waves.

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