Telecom regulator asked to audit spectrum use by telcos

Thomas K. Thomas Updated - June 05, 2013 at 10:33 PM.

Telecom Dept request follows CAG criticism of air wave use

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The Department of Telecom will ask the sector regulator to conduct an audit of spectrum used by telecom companies to ensure the resource is used efficiently. The move comes after the DoT was severely criticised by the Comptroller and Auditor General for wasting spectrum resources.

The CAG, in a recent report sent to the Department for comments, had said there was wide variation in spectrum use by the various service providers, even in the prime metro areas.

Inefficient use

This was primarily the result of inefficient utilisation of available spectrum and has led to lower telecom revenues in the form of lower licence fees and spectrum charges to the Government, the report had said, adding the DoT had not taken any action to incentivise efficient use of air waves.

The one-man Committee appointed by Telecom Minister Kapil Sibal, post the 2G spectrum scam, had also raised this issue.

“All spectrum allocation should be audited to determine efficient and proper utilisation of the allotted spectrum. Audit reports should be widely publicised,” the one-man committee, headed by retired Justice Shivraj V. Patil, had concluded.

According to an internal DoT note seen by Business Line , the Telecom Regulatory Authority of India will soon be able to undertake regular audit. The issue has been hanging fire since 2010, after the regulator had offered to conduct the audit. The DoT had earlier considered entrusting the task to the CAG, but the Wireless Planning & Coordination wing, responsible for allocating spectrum, wants the job given to TRAI.

The CAG had observed that while one service provider has been catering to 91 lakh mobile subscribers with 10 Mhz of spectrum, another operator in the same service area of Delhi with 12.4 Mhz spectrum was providing services to barely 26 lakh subscribers.

Yet another operator with 4.4 mhz spectrum had a reported a customer base of 28.51 lakh in the same service area.

Mobile operators said that instead of penalising operators for inefficient usage, the Government should incentivise optimum use.

Leave it to operators

Rajan Mathews, Director-General, Cellular Operators Association of India, said: “Once the spectrum is auctioned and operators have paid the market price, there is no point conducting an audit. Operators would be foolish to keep spectrum idle after having paid so much money. The Government has also got its revenue so it should leave it to the operators to use spectrum the way they think is best.”

thomas.thomas@thehindu.co.in

Published on June 5, 2013 13:27