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Our Bureau

New Delhi, Feb. 27 The US has formally suggested to India that allocating spectrum through an auction method would be the best way to distribute a scare resource.

“The US Government has recommended to the Indian Government that it should follow open auction method for allocation of 2G and 3G spectrum,” the US Embassy First Secretary (Economics), Mr Eric Anthony Jones, said at the launch of the Voice over Internet Telephony services by American firm Cordia Corp.

The US stance is in line with the suggestion made by the Indian Finance Ministry and the Telecom Regulatory Authority of India. The Finance Ministry had also suggested that auction would enable the Government to realise the best value.

However, the Communications Ministry has so far resisted auction and has instead chosen to adopt a complicated first-come-first-served policy.

On Wednesday, the Department of Telecom issued licences to three new players in select areas only, despite the fact they had applied for a pan-India licence. While Videocon promoted Datacom was given licences for 19 circles, Swan received only for 2 circles while Idea got 1. Others who had earlier got letters of intent, including Shyam Telelink, Unitech and BPL, could get their licences by the week-end.

However, since the Department of Telecom does not have enough spectrum to accommodate all the new players across the country, licences are being given only for a few areas with the condition that they are subject to the final order of the courts.

The High Court and the telecom tribunal are hearing various cases lodged by those companies who have been adversely hit by DoT’s first-come-first-served policy.

According to the Wireless Planning and Coordination wing, spectrum is adequately available only in 4 circles and in the rest of the country there is enough only for 2-3 new players.

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