3G auction – Finance Ministry vs. DoT

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3G auction has not yet started, but the tussle to grab a piece of action has already begun.

Finance ministry has objected to DoT’s announcement of 3G policy:

Officials in the Finance Ministry said since the 3G policy contained clauses with financial implications such as determination of the spectrum acquisition price and reserve price for auction, fixation of spectrum usage charges and penalties for hoarding of spectrum, it is mandatory for DoT to consult with the Ministry.

They said the Transaction of Business Rules 1981 prescribed mandatory consultation with the Ministry of Finance as a pre-condition in respect of all issues which have issues which have financial implications. They added that the Union cabinet, in its meeting on October 2003 had decided that spectrum pricing would need to be decided mutually between DoT and MoF to ensure efficient usage of spectrum. [source]

DoT now has taken a clear stand that there will be no delay in auctioning spectrum for 3G mobile services and there will be no change in the announced policy guidelines.

Since the Finance Minsitry has fully agreed to spectrum pricing formula and auction , and was fully involved with the process, , we are consistent with the decision of the Cabinet. It is therefore surprising that the Ministry of Finance has now decided to express reservations on procedural aspects. [source]

..And the fight continues.

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