In a move that will impact cellular operators in border areas, the defence ministry has called for the creation of a "Defence Interest Zone", with regard to spectrum allocation, in an area of about 100 km contiguous to the international boundary.
The ministry has informed the department of telecommunications that having such a zone is a "necessity" and it must include this provision in the upcoming National Frequency Allocation Plan. (India is still under the NFAP-2002, but, the DoT is slated to come out with new plan in 2006.)
This proposal, if implemented, would see a defence zone along India's boundaries with Pakistan, China, Nepal, Bhutan, Bangladesh and Myanmar.
Additionally, the impact would be felt in 12 of the 24 telecom circles in the country - Gujarat, Rajasthan, Punjab, Jammu and Kashmir, Himachal Pradesh, Uttaranchal, Uttar Pradesh, Bihar, West Bengal, Sikkim and the North Eastern states.
More importantly, many cities will also come under the scanner of this zone, including the likes of Kolkata, Amritsar, Srinagar and Jammu.
"For cellular operators, the implication is that the armed forces will get priority over them with regard to spectrum allocation within this zone.
"Their operations may also have to be restrained as the defence services would be eligible for more than their earmarked spectrum across the different bands in this zone. Additionally, during national crisis, the operators would also have to surrender spectrum for civilian purposes to the defence forces," explained an industry source.
Cellular operators however favour an exclusive "defence band" across the country as a solution, rather than a special zone along the international boundary. The exclusive defence band model has been adopted by countries such as the USA, China, the United Kingdom, France and Germany.
Addressing the concerns of the defence ministry, the operators have also agreed to give up their spectrum during an emergency.
"If there is a national crisis, we would be bound to release (spectrum) on first demand without any contest," they said in a statement to the Parliamentary Standing Committee on IT.