3G spectrum auctioning may be delayed by another two three weeks as inspite of public announcements by the Ministry of Telecom, there are still vague areas related to availability of spectrum for auctioning. 

This fact is revealed in DoT’s own internal note where it mentions that with the latest MoU signed between it and Ministry of Defence (MoD), some changes will have to be incorporated in the notice inviting applications and this will again require approval from the Law Ministry. Eventually this may take up to 2 to 3 weeks meaning the process will be delayed by that much time. The DoT states that the auction will happen within this fiscal year for sure.

According to DoT, subsequent to various discussions by the empowered group of Ministers, 2 blocks of 5MHz in 1920-1980 MHz band are available for auctioning and this can be mentioned in the notice inviting applications (NIA). But the issue is that there is a dispute between the MoD and the DoT over the number of blocks available with DoT for auctioning. While the DoT says it has two blocks available for auctioning excluding the block allotted to BSNL and MTNL in each of the circles of their operations, according to MoD, there is only one block presently available for auctioning.

If DoT goes ahead with the auctioning of both the blocks, 3G operations of BSNL and MTNL maybe hit.

Another 5 MHz of spectrum in the 1954-1979 MHz will be available by July 2010. But the DoT note says that it can auction the block now and can take 25% of bid amount for the spectrum. The spectrum will be available upon operationalization of  AFNET, promulgation of defence band, defence interest zone and waiver of spectrum charges for defence forces.

Another block of 5 MHz of spectrum will be released by the MoD upon supply of equipment which will happen only by September 2010. Again the DoT feels that it can auction the spectrum now take up to 25% price for this spectrum.

 DoT says that the last block of 5 MHz of spectrum will be released only after three years upon completion of the network to be built by BSNL. This block can not be auctioned now as the market price is expected to increase after three years.