The Department of Telecommunications (DoT) feels that the exchequer can obtain a minimum of Rs 858.50 billion by selling 50 per cent of the spectrum vacated by the Ministry of Defence (MoD), say news reports.

According to an internal DoT note, these calculations are based on the assumption that about 20 MHz of 2G spectrum and an equal amount of 3G spectrum can be sold to operators if the MoD was to free up these radio frequencies.

In total, the DoT hopes the MoD vacate up to 80 MHz of airwaves for commercial telephony. DoT?s projections are part of its response to the MoD?s threat that it will not release additional airwaves for commercial use.

The MoD has already freed up 15 MHz of 3G spectrum, which was sold during 2010?s spectrum auction, and has also vacated 15 MHz of 2G spectrum, which has been allocated to new operators. The remaining 10 MHz of spectrum in 3G (for two operators) and 5 MHz in 2G will be released only after the alternative optic fibre network being built by Bharat Sanchar Nigam Limited (BSNL) is completed.