The Department of Telecom (DoT) has sought clarifications from TRAI on the quantum of spectrum auction. The inter-ministerial panel of telecom commission has send back regulators recommendations on spectrum valuation and pricing for a review saying that some of them can’t be implemented in the present form.
The telecom regulatory body last month given its recommendations on valuation and pricing of 1800 Mhz and 900 Mhz spectrum bands, being used for 2G services, for the next round of auction. The regulator had suggested about 10 per cent higher price for spectrum in 1800 Mhz over the final bid price that was received in the February auction.
It may be recalled that for the upcoming auctions, scheduled to begin February next year, the availability of spectrum is the most contentious issue. Most of the spectrum that are proposed to be put up for sale are being used by Airtel, Vodafone, Idea Cellular and Reliance Communications across various parts of the country.
The regulator had suggested CDMA spectrum reserve price of Rs 2,685 crore per megahertz for auction, which is around 50 per cent higher than the previous pan-India base price
The next round of spectrum auction is proposed to be held in February 2015 from which government is estimated to garner at least Rs 9,355 crore. The regulator has also recommended selling radiowaves in the 2100 Mhz band along with the proposed auction. Part of spectrum in 2100 Mhz band is held by defence and DoT is in discussions to get some frequencies vacated for 3G mobile services in this band.
“Telecom Commission will give its view to higher authorities for their final decision. In some cases, decision can be taken at the Telecom Ministry’s level and in other cases it may need the Cabinet approval,” the official said.
TRAI has also recommended taking back 900 Mhz spectrum from state-run BSNl and most of CDMA spectrum from MTNl and BSNl. The suggestion has been turned down by DoT’s internal committee saying DoT has no jurisdiction to take back spectrum from these companies under the licence conditions. Although MTNl has offered to surrender one slot of CDMA spectrum, it has sought compensation for it.