The Hindu Business Line : 3G auction as planned: DoT

New Delhi, Aug. 14 The Department of Telecom on Thursday said that there will be no delay in auctioning spectrum for 3G mobile services and there will be no change in the announced policy guidelines. The DoT has told the Ministry of Finance that the guidelines, including issues related to spectrum pricing, was finalised after proper consultation.

DoT’s response comes in the wake of objections raised by the Finance Ministry on Wednesday that the 3G policy was announced without seeking its approval. In a letter to DoT, Finance Ministry had said that since the 3G policy contained clauses with financial implications such as determination of the spectrum acquisition price and reserve price for auction, fixation of spectrum usage charges and penalties for hoarding of spectrum, it is mandatory for DoT to consult with the Ministry.

Responding to the Finance Ministry’s observation, DoT said, “Since the Finance Minsitry has fully agreed to spectrum pricing formula and auction , and was fully involved with the process, , we are consistent with the decision of the Cabinet. It is therefore surprising that the Ministry of Finance has now decided to express reservations on procedural aspects.”

DoT officials said that the Communications Ministry had several rounds of meeting with the Ministry of Finance before announcing the 3G policy guidelines. They said that it was at the insistence of the Finance Ministry that the base price and the spectrum charges were revised upwards.