DoT, Defence Ministry bury the hatchet on spectrum vacation

Thomas K. Thomas on The Hindu Business Line on 23 May, 2009

New Delhi, May 22
The Department of Telecom and the Ministry of Defence have finally signed the memorandum of understanding for vacating spectrum after both sides softened their stance on the various demands put up by the armed forces.

The defence forces have given up their demand that DoT should provide a 10-year annual maintenance of the optical fibre cable (OFC) network being rolled out for the three divisions of the armed forces. They have also agreed not to include spectrum already allocated to new players as part of the radio waves, which the armed forces are supposed to vacate once the OFC is rolled out.

On its part, DoT has agreed to waive the spectrum usage charge for the armed forces. In addition, DoT has also agreed partially to the defence forces' demands to set up a defence band for exclusive use by the armed forces. But instead of giving an exclusive band across the country DoT will create a defence band along 100 km of the international border.

The agreement paves the way for introduction of third generation mobile services as DoT will get more spectrum for auction. A high-level monitoring committee will be appointed jointly by the Ministries of Communications and Defence to put the agreement into operation.

According to the MoU signed by the two sides, the defence will release 25 Mhz of 3G spectrum and 20 Mhz of 2G spectrum. Of this it will immediately release 10 Mhz of spectrum for 3G spectrum and 5 Mhz for existing 2G cellular services. It will release another 5 Mhz for 3G services once DoT places the supply order for setting up an OFC-based network for the Air Force. DoT will get 5 Mhz more of 3G spectrum and 5 Mhz of 2G spectrum on supply of the equipment. Once the equipment is installed, the armed forces will give up 5 Mhz each in 3G and 2G bands. Another 5 Mhz of 2G spectrum will be given on commissioning of the OFC network.

In return, DoT has agreed to setting up an exclusive defence band and Defence Interest Zone where spectrum will be reserved only for use by the armed forces. DoT will lay 40,000 route kilometres of OFC connecting 219 army stations, 33 navy stations and 162 points for the air force.

The cost of the project is estimated to be Rs 10,000 crore for which the Communications Ministry will seek the approval of the Cabinet. DoT had earlier refused to sign the MoU on grounds that it could not accept the conditions set by the armed forces for releasing spectrum.