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Business News/ Industry / Telecom/  EGoM may decide next course of action on CDMA spectrum auction
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EGoM may decide next course of action on CDMA spectrum auction

Trai has not recommended a reserve price for CDMA spectrum auction

Trai said that it cannot suggest a price for auction of spectrum in 800 MHz band, used for offering CDMA services, as the process needs to be started afresh. Photo: MintPremium
Trai said that it cannot suggest a price for auction of spectrum in 800 MHz band, used for offering CDMA services, as the process needs to be started afresh. Photo: Mint

New Delhi: The Empowered Group of Ministers (EGoM)on telecom is likely to decide in its 22 November meeting on the next course of action on CDMA spectrum auction, for which Telecom Regulatory Authority of India (Trai) has not yet recommended a reserve price.

The department of telecommunications (DoT) last week had asked Trai to suggest a reserve price for 800 MHz band, used for offering CDMA services, within 15 days. Trai replied saying it cannot suggest a price for auction of spectrum in 800 MHz band, used for offering CDMA services, as the process needs to be started afresh.

“We have received the reply from Trai and are deliberating on it. The EGoM is likely to take a call on the further course of action on the matter," DoT sources said.

The source added legal opinion might also be sought on the matter. Earlier, in its clarifications on its recommendations for the upcoming spectrum, Trai had reiterated its stand against auctioning of this band.

The regulator in its reply to DoT said that it had responded in full on the original reference made to it by DoT and if the government wants it to suggest a price for 800 MHz spectrum, it should come as a fresh reference so that process can be started afresh.

Trai said: “The authority is of the opinion that the action on original reference is over and done with. There can be no continuing reference to that earlier reference. It is now for the central government to take a final decision."

Last week, DoT explained Trai that an extended GSM (EGSM) band required vacation of spectrum by the defence ministry which is likely to take time and keeping unsold spectrum in the 800 MHz band would result in forgone revenues for government.

Trai, however, has said that the last week communication cannot be in continuation with earlier reference on which it has already given its recommendation and government needs to clarify if it is a fresh reference.

“The reference dated 12 November 2013 is a new reference and Trai will be able to proceed with the matter if it is clarified and confirmed that this is fresh statutory reference seeking recommendation of the authority," Trai said.

The regulator further slammed DoT for asking to send recommendation preferably within 15 days.

“There is no provision in the Trai Act which enables the stipulation of time limits. There is also no provision which allows for a preference on time limits to be indicated by the DoT. Hence, it is clearly not appropriate for the DoT to presume that it can suggest a time limit, even as a preference" Trai said. PTI

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Published: 19 Nov 2013, 09:31 PM IST
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