Amid confusion about the availability of spectrum for the launch of 3G mobile services, the Department of Telecommunications might delay the spectrum auction till the next fiscal. The Union Law Ministry too has asked the government to auction only the available slots, arguing that successful bidders may seek compensation in case of a delay in allotment, resulting in revenue losses to the exchequer. Asking the DoT to revise NIA (notice inviting applications), the Law Ministry in its opinion on DoT’s letter on the issue has said only those slots that could be allotted for commercial use by September 1, 2010, should be auctioned. Communications and IT Minister A. Raja had recently reiterated that the 3G spectrum auction would be completed before March 31, 2010. But with the Law Ministry seeking revision of the NIA draft and defence forces agreeing to vacate additional spectrum by mid-2010, early auction appears unlikely. The Law Ministry has pointed out that a successful bidder may incur huge infrastructure costs for rolling out advanced mobile services and may seek compensation in case of a delay. Significantly, the government is eyeing Rs.35,000 crore for 3G spectrum auction. The NIA draft submitted to the Law Ministry says though the government intends to assign the right to commercially use the allotted spectrum by September 1, 2010 and if for any reason the government is not able to assign spectrum by December 31, 2010, successful bidder shall be refunded the entire amount deposited by it along with compound interest. It also says that the government has decided to assign by auction three to four blocks depending on the availability of spectrum.
Source: http://www.hindu.com/2010/01/30/stories/2010013059881200.htm
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