The Telecom Commission, the top body of the DOT to take decisions, met yesterday, 24th May to discuss about the recommendations of the TRAI on spectrum auction and other connected matters. It is reported that the TC suggested that instead of 5MHz of spectrum 10 MHz of spectrum for each circle can be auctioned. This is almost double of what TRAI has recommended. There has been strong pressure from the private lobbies to increase the spectrum for auction after the recommendation of the spectrum. The TC is also reported to have suggested that more spectrum could be allotted, if the defence department vacates some of its excess spectrum.
The present decision will not only give more spectrum to private players, but the government will also get more money. Our demand for free spectrum for BSNL was not at all an agenda for the Telecom Commission.
The Telecom Commission did not take any decision on the base price of the 2 G spectrum. The TRAI has recommended Rs.3,622 as the base price, while the DOT suggested Rs.4,245. The private companies have been warning that they will have to increase the call charges many times if the recommendation of the TRAI is accepted. They met the Ministers of Finance, Telecom and others in power. It may be due to the pressure from the private companies that the TC did not take any decision in the matter.
Another issue was the subsidy to the BSNL for providing loss making connections in the villages and rural areas. The BSNL has calculated that the loss would be around Rs. 9,306 crore per annum. But the TRAI recommended only Rs. 1500 crore for this year and Rs. 1,250 crores next year. And surprisingly, the USOF rejected the recommendations and had asked the DOT that enough subsidy has been given earlier and there is no necessity for further subsidy. The JAC had demanded both the management and the DOT for increased subsidy. No decision was taken by the Telecom Commission on this issue also. I have spoken to the CMD BSNL to further pressurize the DOT for further subsidy and he has asked to meet the DOT Secretary in this respect. The JAC is trying to meet the Secretary DOT on this urgent issue.