Spectrum vacation by defence still stuck in disagreements

While the government is getting ready to launch the 3G spectrum auction during January, a number of issues relating to spectrum availability remain unclear. In latest developments in this regard, the defence establishment has raised its estimates for construction of an alternative optic fibre communications network to Rs 14,000 crore from Rs 5,000 crore earlier.

Telecom ministry is now saying that it has asked the BSNL to construct the network for defence, but that defence will have to get the additional allocation from finance ministry. The issue can lead to further delay in spectrum vacation by the defence and hence delaying the launch of 3G commercial services in the nation. This will also affect plans of companies like Bharti Airtel and Vodafone are betting big on 3G services.