Telecom dept rules out auction of more broadband spectrum

Telecom department has said that it is difficult to auction more broadband wireless access

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(BWA) spectrum in the current financial year due to unavailability of enough airwaves on pan-India basis.

This may lead to massive revenue shortages during current fiscal as finance minister Pranab Mukherjee has taken credit for mobilising Rs 13,000 crore non-tax revenues through auction of BWA spectrum.

“We do not have any broadband wireless access currently available on nationwide space. Slots are available only for 15 circles,” secretary, DoT R Chandrashekhar told reporters on the sidelines Nasscom Emergeout Conclave here.

He said the department is discussing the matter internally with finance ministry to look into the matter.

In a letter to the telecom secretary dated July 8, economic affairs secretary R Gopalan pointed to the fact that government had fac

tored in Rs 13,000 crore as non-tax revenue receipts in 2011-12 budget estimates.

“Finance secretary has separately requested all ministries / departments to closely monitor the non-tax revenue receipts projected in budget estimates 201112 to avoid any shortfall,“ Gopalan said in his letter to telecom secretary.

The letter also said that finance ministry hopes that DoT would have initiated the process of auctioning BWA “spectrum to achieve the targets in the current financial year.“ The letter was a second from the fi nance ministry to DoT in the last three months.

On asked Chandrashekhar if DoT had taken any call on that letter so far, he said, “We have got inputs from the corporate affairs ministry and a final examination is being done.“

Telecom department also said it has received inputs from corporate affairs ministry with regard to eligibility of 85 new licenses and would take a final decision soon on whether these need to be cancelled.

It had served 119 show cause notices to various telecom operators last year, of which 85 were for those ineligible to get licences. “We have received the inputs from ministry of corporate affairs and the final examination is being done. We are also seeking the attorney general's view since the legal view is required,“ he said.

Last month, telecom regulatory authority of India had recommended cancellation of 2G licences of 53 firms for failing to meet rollout obligation norms.

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