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Our Bureau

New Delhi, April 11 The Central Vigilance Commission (CVC) while advising the Department of Telecom (DoT) to follow an auction process for spectrum allocation, has asked the Department to give reasons on why an auction cannot be held for the balance allocation of 2G spectrum.

Sources told Business Line that subsequent to the presentation made by DoT in February before the Commission, the CVC has sought certain clarification on the issue.

Not satisfied with the earlier response of DoT, the CVC has sought clarification on whether any technical method has been devised for measuring the optimum use of the allotted spectrum and whether these methods have been used by the Government before considering any request for additional allotment.

The Department has also been asked whether a proper monitoring system was in place to ensure that no operator was hoarding spectrum.

The Commission wanted to know the measures envisaged to weed out non-serious players/speculators.

It has asked DoT to furnish the details of the steps taken to oversee mergers and acquisitions and to ensure a minimum holding period based on roll out requirements. Details have also been sought to give list of letter of intents (LI) issued in the recent past and on what basis.

Clarification has been sought on ‘combination of technology’ recommendation and the process of allotment of licence and allocation of spectrum under this category.

The Commission has asked the Department to give details of who were the beneficiaries who were allotted spectrum on TRAI’s August 2007 recommendation of combination of technology and switching over from limited mobility to full mobility.

The Department was asked to specify how were the operators allotted spectrum in comparison to the others in the waiting list, whether the allotment was out of turn, what principle was followed, was this a proclaimed policy, and when was this advertised.

The Commission wanted the Department to clarify why TRAI’s recommendation of 2003 to award fresh licences via a multi-stage bidding process was not followed and licences were issued at 2001 prices.

DoT was also asked to clarify what will determine the queue for spectrum allocation. It wanted the Department to clarify the principle of first-come first-served basis for the issue of licence and allocation of spectrum.

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Spectrum: Vigilance panel seeks clarifications from DoT

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