Trai recommends 22% cut in base price for 3G spectrum1 min read . Updated: 31 Dec 2014, 05:17 PM IST
The telecom regulator recommended a base price of Rs2,720 crore per MHz for pan-India 3G spectrum
New Delhi: The Telecom Regulatory Authority of India (Trai) on Wednesday recommended a base price of ₹ 2,720 crore per megahertz (MHz) for pan-India 3G spectrum, about 22% cent lower than the previous auction which would provide some relief to mobile operators.
The government in 2010 had auctioned 3G spectrum at pan-India reserve price of ₹ 3,500 crore per MHz. Besides, Trai has recommended that DoT should put additional 15 MHz for auction, which has to be obtained in exchange of spectrum that is with the defence services.
The department of telecom, however, is optimistic of getting 5 MHz of 3G spectrum (2100 MHz band) from the defence ministry. “The authority recommends that the reserve price for 2,100 MHz spectrum in each LSA (licence service area) should be... ₹ 2,720 crore," Trai said.
“Furthermore, the 15 MHz of spectrum in the 2,100 MHz spectrum being vacated by ministry of defence, in lieu of spectrum in the 1,900 MHz spectrum, should be auctioned in view of the in-principle agreement reached with MoD, even if it is not available immediately," it added.
This can be done as “actual assignments do not have to be made immediately", it said. The regulator has recommended that the DoT should take all measures to ensure that the 2,100 MHz spectrum which was earlier assigned to STel in three service areas—Bihar, Orissa and Himachal Pradesh—is also put to auction.
STel closed its business in India after the Supreme Court cancelled 122 licences in February 2012 in the 2G spectrum allocation case. Incidentally, the 2010 reserve price for 3G spectrum had formed the basis of CAG estimating notional loss figure of ₹ 1.76 trillion in 2G spectrum allocation case of 2008.