Telecom regulator Trai sticks to its stance on 2G auctions
According to sources, Trai has also suggested that the spectrum utilisation charge be enhanced from 1% to 3%.
NEW DELHI: The Telecom Regulatory Authority of India (Trai) has stuck to its formula for auctioning 2G spectrum to new players as also to shifting existing players to a new frequency at market-determined price.
In his reply to the government, JS Sarma, the outgoing telecom regulator, on Sunday is learnt to have made only three "exceptions" from his earlier recommendations, which have been lambasted by the telecom players.
The report is due to be made public later on Sunday.
One, Trai has suggested that in states where sufficient amount of spectrum is not available in the 800 mega hertz (MHz) frequency, the government could consider lowering the reserve price from two times that of airwaves in the 1800 Mhz band to 1.3 times. This means, instead of paying Rs 36,000 crore for 5MHz spectrum, as was suggested earlier, operators would be required to start bidding at around Rs 23,500 crore.
The regulator, a source said, has also suggested that the spectrum utilisation charge be enhanced from 1% to 3%.
Three, the watchdog has suggested that a second block of 5MHz should be made available for bidding wherever there is frequency available in teh 1800 MHz band after reserving for refarming and a block available for one operator.
Sarma's report to the government comes in the wake of queries from the telecom commission, an inter-ministerial panel of officers. The recommendations come on his last day in office and are expected to push back the schedule by a week.
The government has been given time till August 31 to complete auction of spectrum and licences for all operators affected by the Supreme Court ruling cancelling 122 licences awarded by former telecom minister A Raja, show is now in jail facing corruption and criminal conspiracy charges.
In his reply to the government, JS Sarma, the outgoing telecom regulator, on Sunday is learnt to have made only three "exceptions" from his earlier recommendations, which have been lambasted by the telecom players.
The report is due to be made public later on Sunday.
One, Trai has suggested that in states where sufficient amount of spectrum is not available in the 800 mega hertz (MHz) frequency, the government could consider lowering the reserve price from two times that of airwaves in the 1800 Mhz band to 1.3 times. This means, instead of paying Rs 36,000 crore for 5MHz spectrum, as was suggested earlier, operators would be required to start bidding at around Rs 23,500 crore.
The regulator, a source said, has also suggested that the spectrum utilisation charge be enhanced from 1% to 3%.
Three, the watchdog has suggested that a second block of 5MHz should be made available for bidding wherever there is frequency available in teh 1800 MHz band after reserving for refarming and a block available for one operator.
Sarma's report to the government comes in the wake of queries from the telecom commission, an inter-ministerial panel of officers. The recommendations come on his last day in office and are expected to push back the schedule by a week.
The government has been given time till August 31 to complete auction of spectrum and licences for all operators affected by the Supreme Court ruling cancelling 122 licences awarded by former telecom minister A Raja, show is now in jail facing corruption and criminal conspiracy charges.
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Readers' opinions (12)
Well, time has come for the world to accept that bribing will not get them business. If such companies want to take a dim view of India they will not be missed. They can all go to China or Pakistan. Keep it going India and don't pay any attention to corrupt corporates. They will come on their knees.
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This govt. will do everything to discredit SC and save the operators. After all the beneficiaries of the money have been the families (DMK, G family). They have no moral groundings of any kind. They are quite capable of harming their own to save their skin (See what is happening in Andhra. They are not averse to file cases against YSR through his son.). The auctioning should be through a SC appointed panel and under the supervision of SC.
Well said sir! K, C, & G family who are the beneficiaries to the tune of billions are putting enormous pressure on TRAI chairman to keep the bid price so high that eventually, many players would opt out and the remaining players will garner huge chunk of spectrum and increase the price multifold. Then Raja will be portrayed as messiah of masses who wanted to bring down the tariffs and supreme court will be the villain. Well done, Italian bar waitress. The future of India is bright indeed in your hands!
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Auction under this government is not welcome. Anything on this should be proceeded after General Elections, when definitely a new face will take over at the centre. I suspect this centre will only yield and cover up the massive loot, encourage syndicate and somehow salvage, which is not acceptable. Once bitten, people are not ready to be once again bitten.
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