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Rediff.com  » Business » 3G: EGoM fails to resolve major issues

3G: EGoM fails to resolve major issues

Source: PTI
Last updated on: January 12, 2010 17:50 IST
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TelecomDifferences over number of private players to be allowed to offer 3G mobile services continue within the government as an empowered ministers' panel on Tuesday failed to reach at any consensus.

The empowered group of ministers, headed by finance minister Pranab Mukherjee, met in New Delhi to finalise the notice inviting applications from the potential operators to participate in the forthcoming auctioning for 3G spectrum.

The EGoM had decided in its last meeting that four blocks of 3G spectrum would be auctioned whereas the draft NIA document projected only three blocks.

The defence, according to sources, has already vacated 10 MHz of spectrum and five more MHz would be released by August this year, so this make airwaves sufficient only for three private operators besides Bharat Sanchar Nigam Limited/Mahanagar Telephone Nigam Limited, which have already started services on commercial basis.

"Some of the issues were discussed at the EGoM. Still some of the issues between the defence and department of telecommunication are yet to be resolved.

"The chairman (Mukherjee) took all the views. He will decide. If neccessary another consultation will take place. otherwise he will decide," telecom minister A Raja told reporters after the meeting.

Asked whether the time line for auction of 3G spectrum would be pushed further, the minister said, "As of now it has not been pushed ... there are a number of areas of differences. . . it will be resolved."

The government had earlier said spectrum auction would take place for four slots on January 14. But differences with finance ministry over payment schedule and defence ministry over spectrum release led to the delay.

Finance ministry is expecting Rs 35,000 crore (Rs 350 billion) from the 3G spectrum auction and had budgeted for the current fiscal to bridge the fiscal deficit.

However, the auction will get pushed further if another EGoM is required to resolve the issue.

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