3G spectrum release will cost defence Rs 4000cr

Mobile operators awaiting spectrum availability from the defence ministry to start 3G mobile services may be disappointed to know that armed forces are far from vacating any radio waves in the near future, as releasing it will cost about Rs 4,000 crore.

3G services are high-end mobile value added services like real-time transactions, video streaming, voice and data services, hold potential for revenue generation for telcos.

"BSNL itself has admitted that laying of exclusive fibre will take about two years to complete at an additional cost of Rs 1,300 crore. This will take the total cost of the army project alone to Rs 3,078 crore. With this increase, the total cost of the project for the three services will be around Rs 4,000 crore approximately," a defence ministry letter to the Department of Telecom (DoT) said.

The DoT had earlier approved Rs 980 crore, the initial estimated cost of the network worked out by the Project Definition Team comprising members from DoT and defence ministry. Thereafter, there is no indication regarding additional allocation of fund to meet the increased cost of the network, it said.

The ministry also said for the interest of the defence security, the armed forces must get reliable alternative networks and full connectivity before the existing spectrum space in vacated.

The defence ministry has also said there has been no meeting of the Steering Committee held on the issue of army and navy components since December 8, 2006, to ensure smooth roll out of the network. It had asked DoT to convene combined meetings for the three services six months ago.