Government is unlikely to offer 3G Spectrum in the 800MHz band in the upcoming auction as the defense ministry has disagreed on swapping the bandwidth. The Telecos are dejected as this deal had a potential to generate estimated revenue of Rs 5000 Crore this fiscal year. It will also be a speed bump for the Telecos in expanding its high speed 3G Data services.
One of the senior officials who have an insight on the talks between the defense and telecom ministry told ET that “Apart from other issues, the defense (ministry) has cited some technical issues pertaining to the use of airwaves in critical border areas.”
Telecom Companies are currently facing a Spectrum crunch and they will be requiring additional airwaves in the 2100 MHz band which is traditionally used for deploying the high speed 3G. Operators had requested DoT to hold talks with the Defense ministry to swap the 15MHz in the 3G Band with an equal portion of airwaves in the 1900 MHz band. DoTs failure to address the defense band zone issue has made the deal sour. Notifying a certain chunk of the spectrum will ensure that no one will be able to use it except for the Army themselves.
