PM clears air over 3G spectrum,auction scheduled for Jan 14

The auction of 3G spectrum is scheduled to commence on January 14. The auction has been marred by differences between the defence and telecom ministries over vacation of spectrum for civilian use.

Singh said the provision of 3G and broadband wireless access services by private and public sector telecom companies would help in the growth of the telecom market and provide a fillip to broadband on wireless.

With regard to Mobile Number Portability (MNP),Singh said it would be started early next year. “This would give more choice to customers who would be able to change their operator while retaining their cellular phone number. It would also encourage telecom companies to improve the quality of their service,” the minister said.

MNP was slated to roll out in metros from December 31,but is set to be delayed because operators are still not fully prepared to meet the deadline. Also,the government has imposed new regulations related to security.

The service will allow mobile subscribers to change their service providers while retaining their old number by paying a maximum fee of just Rs 19 for each such shift.

However,Singh added that the slow growth in the telecom manufacturing sector is an “area of concern for us”. He said though there has been some growth in the production and export of telecom equipment,there is scope for improvement and the “decision to allow 100 per cent FDI in the manufacture of telecom equipment should be used to attract potential investors”.

India has nearly 500 million mobile users and adds about 15-16 million users a month. The prime minister said the government has decided to implement a massive programme of broadband for all,under which all the 2.5 lakh gram panchayats in the country will be provided high speed broadband connectivity by 2012.

Present on the occasion,telecom minister A Raja called on the industry to cut down SMS rates on the lines of voice telephony and said the Universal Service Obligation (USO) Fund rules will be amended to make it more investor friendly for infrastructure sharing in rural areas.