The 12th five year plan document (2012-17) states that the government ought to audit spectrum usage and promote re-farming of spectrum to ensure efficient utilisation of the same, say news reports.
The document suggests that additional spectrum would be required, keeping in mind the introduction of new technologies, high bandwidth applications and the increasing user base. It also states that as part of spectrum re-farming, existing operators holding licences in the 900 MHz spectrum band will have to surrender the spectrum to the government and bid for spectrum in the 1800 MHz band at the market price.
Meanwhile, incumbent operators will be allowed to retain 2.5 MHz of spectrum in the 900 MHz band but will have to pay auction determined prices for retaining this spectrum.
The 12th Plan aims to provide 1,200 million new connections and envisages extending mobile coverage to all villages and increasing rural teledensity to 70 per cent. It also aims at achieving 175 million broadband connections by 2017.
Further, the document envisages making available additional spectrum in the 300 MHz band for international mobile telecommunications services and making India a hub for telecom equipment manufacturing by incentivising domestic manufacturers with a thrust on intellectual property rights, product development and commercialisation.
The 12th Plan also suggests that the Universal Service Obligation (USO) Fund be leveraged for providing incentives for pilot projects, fixed wireline/wireless phones, using renewable energy sources and for promoting wireline broadband in rural areas. The document further suggests rationalisation of levies and taxes borne by the industry to ensure affordable delivery of services to consumers.
