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An internal note authored by two wings of the Department of Telecommunications lists an amazing array of inconsistencies in the governments approach to third generation mobile licences, which are unlikely to be granted anytime soon. If the administrative department can identify so many problem, as brought out in a report in this paper on Monday, it should be able to find the solutions to the problems as well. If the problems still persist, it can only mean that the ministry chooses to stymie the progress of the telecom sector, vaunted success story of liberalised Indian infrastructure. This hurts the economy, forgoing enormous, life-changing growth potential in rural India, as these columns have pointed out time and again. Now, it hurts the telecom industry as well. The reality is that competition among the major service providers has intensified to an extent where voice calls cease to yield much profit. Telecom company growth now will depend on value added services. Granted, operators are yet to creatively exhaust the potential for voice-based value added services. However, the array of value-added services that can be delivered through 3G networks would be much larger than of possible voice-based services. The ongoing delay and zigzagging dither over awarding 3G networks hurt the industry.

The time has come for the government to de-link auction of licences for wireless broadband services using Wi-Max from auction of 3G licences. The government should move ahead with Wi-Max spectrum auctions, without waiting to complete 3G auctions. This would open up much-needed new revenue streams for the industry. Wi-Max has the potential to bring high-speed data connectivity to rural areas at a relatively low cost. That would pave the way for effective delivery of e-governance, financial inclusion and development schemes, apart from a quantum leap in education and healthcare. The issues that hold up licences in 3G do not apply to Wi-Max. The government should move ahead on this front.