The Telecom Commission has asked the Telecom Regulatory Authority of India to explain why a large chunk of available spectrum should be kept idle for later usage when there is demand for it now.

The panel has also asked TRAI to explain why it has suggested different timing for re-farming spectrum in 900 Mhz band and 800 Mhz band. Both these questions are key to the future of 2G auctions scheduled to be held in July-August.

Re-farming spectrum

TRAI has suggested to sell only one block of 5 Mhz spectrum immediately and keep a large part of the 1,800 Mhz band for re-farming. This has put an artificial squeeze in supply when there are as many as 7 or 8 players interested in buying it.

“Greater clarity is required on the recommendations regarding timing of re-farming and quantum of spectrum to be set aside for meeting re-farming requirements at a later date for both 900 MHz and 800 MHz bands and whether there is scope for a more optimised approach that would not necessitate keeping a large quantum of spectrum reserved and unutilised even when there is demand," the Telecom Commission has stated in its comments to the TRAI recommendations.

"TRAI may clarify the basis for recommending auction of one slot of 5 MHz even if additional slots are available for auction after making provision for re-farming and there is demand for such spectrum," the panel has posed.

The telecom has proposed to start the re-farming process for 900 Mhz held by GSM players immediately while for the 800 Mhz band held by CDMA players it has said that re-farming should done progressively.

" TRAI may provide the reasons for refarming 900 MHz band before expiry of the licenses whereas TRAI has recommended spectrum in 800 MHz band should progressively be re-farmed at the time of renewal of licenses of such operators," the Telecom Commission said.

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