GSM mobile operators have told the Government to hold another round of auctions for spectrum and to include the expected income in the upcoming Budget revenue estimates. The Cellular Operators Association of India, in its proposals for the Budget, said that auctioning spectrum would not only help Government bridge the fiscal deficit but also address the objective of reaching telecom services to a wider population.

“The government should envisage auction of additional spectrum in the Financial Year 2011-2012 and accordingly include the proceeds from auction of additional spectrum in the budgetary estimates. This will enhance the proceeds to the exchequer and would serve the national interest of spread of telecom service to all corners of the country,” said Mr Rajan Mathews, Director General, COAI.

This comes even as the operators are still recovering from having paid a huge premium for buying 3G spectrum. Mr Mathews said that auctioning available 2G spectrum would also help Government determine the actual price of spectrum based on market mechanism, instead of relying on mathematical calculations done by the telecom regulator.

“The defence has vacated about 10 Mhz of 2G spectrum and some more is expected. Then there may be free spectrum if some of the new licences are cancelled. The Government should put all of this in the market for sale,” Mr Mathews added.

COAI said that that the spectrum already allocated to the Indian operators is inadequate for the spread of voice and data services. “The spectrum allocated is also inadequate to meet the Government target of spread of data/mobile broadband service to rural areas. So as to fully exploit the benefits of mobile telephony, our members would require allocation of more spectrum,” said the industry body representing all the major GSM operators, including Airtel, Vodafone Essar and Idea Cellular.

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