"As an alternative, the government must issue separate licences for 3G services. If we go in for auction of spectrum, it can create more problems than it would solve. Our experiences with the 2G FM radio auctions have not been good. This presents a case to treat 3G services as separate service," he said.
On further reduction of access deficit charge, he said if the government were to come out with a policy, the regulator would abide by it.
Baijal also cautioned Bharat Sanchar Nigam Ltd on its policy of not sharing its network with other operators for broadband services, saying this may lead to the PSU being overtaken by other players.
"For instance, Andhra Pradesh has been able to launch an alternative cheaper broadband fibre optic network through private-public partnership," he said.
BSNL is the only broadband player at many places. If the BSNL is not able to reduce costs, it should enter into commercial arrangements with others, he said.
According to him, it was only a competitive environment that had helped the PSU raise its penetration from 2 per cent for over 50 years to two per cent every year.
Meanwhile, the department of telecommunications has convened a meeting of operators on December 13 to discuss the issue of sharing of passive infrastructure.
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