Govt constitutes GoM on Spectrum

Govt has formed a GoM to be chaired by the Defence Minister, even though Maran had disfavoured such a constitution.

Even as the Communication Minister Dayanidhi Maran had disfavoured the constitution of a Group of Ministers for resolving issues related to spectrum, Government has formed a GoM to be chaired by Defence Minister Pranab Mukherjee.

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As per the Terms of Reference, the Group would suggest a spectrum pricing policy and examine the possibility of creation a Spectrum Relocation Fund and guidelines for the operation of the Fund.

Last year telecom regulator TRAI had recommended constitution of a Group of Minister to resolve the spectrum related issues and the move was severely criticised by Maran saying Department of Telecom (DoT) was quite capable of resolving all such matters.

According to highly placed sources, the Group of Ministers would determine the quantum of additional spectrum requirement and identify frequency bands for third generation (3G) and Next Generation (NG) services for major users like cellular operators and Defence and Paramilitary Forces.

The GoM would suggest policies for both short term (less than one year) and medium term (less than five years), they said adding the pricing policy would need to look at both the spectral efficiency and sectoral business viability and profitability models, which would be different in case of voice, data/text and images.

Spectrum pricing policy may, as far as possible, aim at revenues fully offsetting the cost of vacation of spectrum by the defence forces.