The ad-hoc mechanism adopted by DoT earlier in allocation of spectrum for mobile services is finally hurting it as the department is yet to make its decision on the future mode for 2G spectrum allocation. This means that the operators will have to wait further for any new additional spectrum allocation.

The DoT apprehends that if it indeed resorts to the auctioning mode, then it may lead to various legal hurdles as new operators may find the move against rules of level playing field considering the fact that incumbent operators had been granted spectrum at a predefined price.

The DoT apprehension is in fact addressed by the panel in its report. The panel has stated that new operators should take into consideration that calls for a uniform level playing field after so many years merely on the grounds of price of spectrum is not justified. It is a known fact that the price of spectrum in the market has changed manifold in the years. The panel felt that auctioning is the best mode to realize the best market price for spectrum.

The DoT is now planning to take a final call on this issue after consulting the telecom regulator, Trai.

The issue had gained importance last year as well when Prime Minister Manmohan Singh had stated that the government favoured auctioning mode for 2G on the sidelines of a telecom conference. But Communications minister, A Raja had quickly refuted the possibility saying that the avenue was not possible due to legal hurdles involved in the process.   

Looking it from DoT’s perspective, whatever decision it takes on the issue is sure to become a debatable matter. It should now consider in identifying the best mode to ensure growth of the sector in the country with optimum benefits to the government in terms of revenue generation.