Maran: Connecting people

New Delhi, June 9: Communications minister Dayanidhi Maran is pitching for free allocation of spectrum through the new National Telecom Policy 2005.

The ministry has set up a high-level committee to draft the policy, which is likely to be placed before the cabinet by this month-end.

However, the finance ministry and the Planning Commission want to put a price on spectrum ? airwaves on which telephone calls and data travel. They favour either a fee-based regime or open auction.

Tata group chief Ratan Tata had created ripples in the telecom sector when he offered to pay Rs 1,500 crore for spectrum. Finance ministry officials refer to Tata’s offer to justify their stand on the issue.

Sources in the communications ministry said a decision would be taken at the cabinet meeting on whether a group of ministers (GoM) will evaluate the issue or whether the proposal would be cleared with inputs from other ministries.

Sources said the request for more tax sops for the telecom sector is also pending with the finance ministry.

The draft NTP 2005 will focus on rural communications, a time plan to bridge the digital divide and the methodology to be used to promote local manufacturing. It will prescribe certain norms for operators when they buy from local manufacturers. The policy will suggest ways to attract more private sector participation in rural telephony by relaxing existing licencing norms, sources said.

Broadband implementation in rural areas, its utilisation in educational institutions and promotion of e-governance will form part of NTP 2005.

A senior communications ministry official said, “Spectrum can be allocated free if it becomes a policy of the government. This will also help in achieving the telecom target as well as rural penetration. This is important and has to be implemented with special focus on availability of spectrum free of cost at least to the rural and underdeveloped areas.”

“The possibility of spectrum auction did not find much favour with senior officials of the telecom department, including Telecom Commission members. There is a possibility that spectrum may be allocated for a nominal fee based on the previous performance of the operator and could be linked to the rural roll out,” sources said.