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 1300 crore (Rs 13 billion). This will take the total cost of the project of the Army alone to Rs 3078 crore (Rs 30.78 billion).  With this increase the total cost of the project for the three services will be around Rs 4000 crore approximately", a defence ministry letter to department of telecom said.

The DoT had earlier approved Rs 980 crore (Rs 9.80 billion), 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 a 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.

Earlier DoT had earlier said that it was talking to defence ministry to vacate 45Mhz of spectrum and the ministry has agreed to release 40 Mhz by July.

The work on shifting the armed forces to an alternative spectrum band for their security operations is on and hopefully by July most of it will be over, the department had said.

Keeping all these developments in mind, defence ministry has once again asked DoT to convene a meeting of the steering committee immediately to discuss the issues pertaining to the three services together. 

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