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GoM meet on 3G to study concerns of Dept of Space, industry

GSM players against Rs 1,010-cr base price for WiMax.

Our Bureau

New Delhi, Aug. 26 The Group of Ministers, set up to finalise the policy for auctioning 3G and broadband wireless spectrum, is expected to take a view on the concerns raised by the Department of Space and other issues presented by industry players to the Department of Telecom.

While the DoS has told the GoM that spectrum for broadband services should be auctioned only after issues related to interference between WiMax and satellite communications are resolved, the industry has raised a number of points including auctioning all available 3G spectrum in one go.

The GoM was set up to decide on the quantum of spectrum to be auctioned and the base price for both 3G and BWA spectrum.

The first meeting of this Group, headed by the Finance Minister, Mr Pranab Mukherjee, met for the first time early this month when DoT presented various options and its possible outcomes. The GoM is scheduled to meet for the second time here on Thursday when it is expected to arrive at a decision on these issues.

Base price

GSM players have expressed concerns over DoT’s proposal to keep the base price for WiMax spectrum at Rs 1,010 crore or 25 per cent of the 3G price.

“DoT is incorrect to suggest that since BWA spectrum will be utilised to offer broadband services in rural areas, the spectrum should be cheaper. Even 3G technologies can offer broadband services in rural areas. There should not be any disparity,” said a GSM player.

They have also raised objections to DoT’s suggestion that some 3G spectrum should be kept in balance for auctioning in future for deploying new technologies such as LTE. GSM operators said that the spectrum band for LTE is different from what is being currently auctioned and therefore DoT should auction all available spectrum.

The CDMA operators have sought income-tax benefits under Section 80-1A for all players who win the auction. They have also sought spectrum in 1900 Mhz and 450 Mhz bands in additional to the one slot in 800 Mhz being proposed by DoT.

The WiMax industry is in favour of keeping the base price for BWA spectrum at Rs 1,010 crore and also increase the number of slots from four to five operators. WiMax Forum has also pushed for creating backhaul links to help connect all the base stations.

The DoS on the other hand has written to the GoM saying that it cannot release any more spectrum for BWA services since it requires a minimum of 150 Mhz for its own satellite services.

Related Stories:
3G spectrum: Ministers to meet on Aug 27
GSM operators want 3G spectrum at Rs 1,000 cr

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