24.11.09

3G spectrum update

The Telecom Commission approved the Rs 9,000 crore optic fibre project for the Army and the Navy in lieu of the 3G spectrum which the defence forces are vacating. The proposal would now go to the Cabinet for clearance. State-run BSNL will construct the OFC network for the defence forces. The defence forces are to vacate 25 Mhz of spectrum in the 3G band so that the government may auction it to private telecom operators. A similar project made for the Air Force is currently under testing. The DoT will move a note for the Cabinet on December 3 to consider granting Rs 9,000 crore for the cable network.Once the Cabinet gives its approval, the DoT and the ministry of defence will sign a formal agreement on December 7.
Communications and IT minister A Raja had written to the finance minister last month saying that the 3G spectrum auctions which were due in first week of January might not be held on time since the defence was yet to vacate the 3G spectrum occupied by it. However, the government then appointed a fast- track committee under Sam Pitroda to resolve the issues so that the auctions could be held on time since the government has already budgeted Rs 35,000 crore as receipts from the 3G auction.

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