GSM operators have told the government to hold another round of auctions for spectrum and to include the expected income in the upcoming Budget revenue estimates, according to news reports. The Cellular Operators Association of India (COAI), in its proposals for the Budget, said that auctioning spectrum would not only help Government bridge the fiscal deficit but also address the objective of reaching telecom services to a wider population.
Rajan Mathews, Director General, COAI has said that the government should envisage auction of additional spectrum in the financial year 2011-2012 and accordingly include the proceeds from auction of additional spectrum in the budgetary estimates. This, he feels, will enhance the proceeds to the exchequer and would serve the national interest of spread of telecom service to all corners of the country.
Mathews also said that auctioning available 2G spectrum would help the government determine the actual price of spectrum based on market mechanism, instead of relying on mathematical calculations done by the telecom regulator.
He added that the defence has vacated about 10 Mhz of 2G spectrum and some more is expected. Then there may be free spectrum if some of the new licences are cancelled. Thus, the government should put all of this in the market for sale.
The COAI also said that that the spectrum already allocated to the Indian operators is inadequate for the spread of voice and data services.
