The auctions for 3G spectrum may finally happen as scheduled with the Ministry of Defence (MoD) and Department of Telecom (DoT) reaching to conclusive talks and agreements.

MoD will now release 25 MHz of 3G spectrum for commercial use. The spectrum will however be available only by June 2010. This should not affect the business plans of successful bidders by much as they will any way require time to roll-out networks. The wait till June may marginally affect trials in those circles.  

DoT will have to build optical fibre network for MoD within three years. The comprehensive roadmap includes a seven stage action plan. DoT needs a formal approval from the Cabinet Committee on Economic Affairs for the proposed move. A team will be set up to oversee this with representatives from BSNL, MoD and DoT. A committee chaired by Cabinet Secretary will monitor the progress every two months while the empowered group of ministers will monitor the project every quarter.

The Defence will release another 20 MHz of 2G spectrum but this will be done over a period of three years i.e. the time when the alternate optical fibre network will be built by BSNL.