New Delhi: Taking a strong stand supporting open, clear 2G spectrum auctions, the department of telecom (DoT) has suggested a three- phase route of informed ascending financial bidding. The decision comes after a long time-period of stillness, dread and conjecture.

DoT functionaries have reached this decision after analysing TRAI’s proposals on modification of licence criteria and spectrum allocation.

A photocopy of the internal DoT note available with ToI, affirms that 2G auction is the only way-forward, which is based on gratitude that owing to the highly aggressive situation, there is a need to assess the entry charges and eligibility condition. Given the tough rationale showed in this notice, it seems it may not be possible to turn around even under harsh political pressure.

DoT uniquely declared that “award of new licences has to be transparent and must withstand legal scrutiny at a later date.”

Ministry officers are expected to face up substantial stress by old and new applicants likewise, to remove this conclusion. More than 30 companies had placed about 500 applications with DoT in the anticipation of pocketing countrywide spectrum at a broadside cost of Rs 1,680 crore.

DoT indicates that reserved cost for admission fee should be equal to the present Rs 1,680 crore entry fees. This according to DoT, was the spectrum price based on an open auction price way back in 2001. Passing up worries of high auctions bids, DoT said, “this will not only fetch more revenue to the government but will also be a transparent process.”

The note also hints that the amount of slots for primary spectrum must be fixed and priority be designated to the top applicant abided by other appliers in a descending order. It admits that spectrum must be apportioned only after getting clearness from the Wireless Planning Cell (WPC) as to how many new GSM and CDMA participants can be seated in each service segment.

DoT is in accord with stiffening of the subscriber-linked spectrum allocation criteria for existing operators by TRAI.

DoT said, “There are quite reasonable and may be provisionally accepted with mild modifications on the commercial terms”. The functionaries outlining the note notice the requirement to shift to a bidding process subject to accomplishment of eligibility standards that should comprise neglecting defaulters of license conditions of CMTS/UASL licences, including rollout duties and responsibilities.

It argues that such defaulting companies should be announced disqualified for granting spectrum/new licenses. DoT’s observances efficiently cope with worries that several non-serious applications were being passed on.