The Department of Telecom may go slow for auction of spectrum next year if operators do not invest in infrastructure to make optimum use of available airwaves and improve quality of services, sources said.
According to official sources, the DoT is of the view that despite auctioning the largest amount of spectrum earlier this year, operators are not investing in infrastructure, as required, which is leading to call drop problem.
The DoT had planned to conduct the auction early next year but is now reconsidering on the timeframe.
A top DoT official said, “For better utilization of spectrum, operators need to adequately invest in the existing airwaves first and after that additional spectrum will be made available for auction.”
The DoT has already written to sectoral regulator TRAI for seeking reserve price of various bands including 700, 800, 900, 1800, 2100 and 2300 MHz that can be used for 2G, 3G and 4G services.
The government expects revenue of Rs 42,865.62 crore from communication services in FY 2016, which include proceeds from spectrum auction and other charges levied by the DoT.
Prime Minister Narendra Modi had also voiced serious concern over the menace of call drops and asked officials concerned to take urgent steps to address it as it affects the common people.
