Govt Policy

GoM to take call on TRAI, DoT panel pricing formula

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The Telecom Commission will present to the Group of Ministers the pricing formula suggested by both the TRAI and an internal DoT committee.
While the TRAI had proposed Rs 18,000 crore as the reserve price for 5 Mhz spectrum, the DoT panel had proposed a 17 per cent higher fee.
The Telecom Commission will also present two options for deciding the quantity of spectrum to be sold. A minimum of eight blocks each of 1.25 Mhz may be put up for auction in all service areas after reserving for re-farming. In addition, a provision may also be inserted to make available another three blocks of 1.25 Mhz to meet the requirement of new entrants.
The second option is to put all spectrum available on the block, which includes 55 Mhz spectrum to be vacated by the Defence.
The Commission has recommended that existing players will be allowed to win maximum of two blocks of 1.25 Mhz each while new players can bid for up to four blocks of 1.25 each. For CDMA operators, it has proposed to sell three blocks of 1.25 Mhz in the 800 Mhz band.
The GoM is expected to meet on June 5 to take a view on these decisions by the Commission. Before that, the TRAI has been asked to give an analysis of its proposals on the industry, tariffs and Government revenue.
TRAI has also been told to look into the possibility of giving the spectrum for a 20-year period but with the option of paying upfront for 10 years and the balance will be based on market determined price at that time.

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