"I had a very fruitful meeting with [the] Defence Minister and both of us agreed that while Defence's need of spectrum for the country's security is important, the growth of telecom as infrastructure sector is equally important. We need to work in consent, coordination and synergy," Prasad told reporters in New Delhi after his first meeting with Parrikar on spectrum issue.
Based on various recommendations and agreements, the DoT expects the Defence Ministry to clear about 165MHz of spectrum across frequency bands.
Out of all bands, there is immediate demand for 3G spectrum in frequency band 2100MHz.
Telecom regulator Trai has recommended that spectrum in 2100MHz band, a part of which is with the Defence Ministry, should be put up for auction along with two sets of spectrum bands- 900Mhz and 1800Mhz in February next year.
Earlier, the Defence Ministry had vacated 15MHz of 3G spectrum which was auctioned in 2010. The Defence had also vacated 15MHz of 2G spectrum, which was allocated to new operators.
Under the agreement with DoT, the remaining spectrum - 10MHz spectrum in 3G and 5MHz in 2G - is to be vacated only after the alternate communication network is completed.
BSNL is creating exclusive alternate network for the Defence. The PSU issued an LoI in July and work is expected to complete in 18 months from the date of issue of LoI.
DoT is also working on the possibility to get another chunk of 150MHz vacated from Defence in 1700-2000MHz frequency band that can be used for commercial 3G and 4G services.
Sources said that DoT has started working on auction of 3G spectrum in 17 out of 22 service areas.
Prasad, however, did not share if 2100MHz band will be put on sale in the proposed auction.
The next round of spectrum auction is proposed to be held in February 2015 and the government is estimated to garner at least Rs. 9,355 crores from sale of radiowaves.
As per estimates, auction of spectrum in 2100MHz band in February can fetch bids worth Rs. 5,000 crores.
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