Telecom Commission seeks clarification from Trai on spectrum price recommendations

The Telecom Commission has sought clarifications from the Telecom Regulatory Authority of India (Trai) on its recommendations on spectrum auction, including a sharp reduction in the reserve price.

The inter-ministerial body will take the final decision on October 29 taking into account the sector regulator's reply.

Trai had in September recommended about 37 per cent cut in base price for 1800 MHz band, compared to the reserve price in the last auction. For 900 Mhz, it recommended a reduction of around 60 per cent.

"By and large, we have gone through all recommendations. On some we have sought clarification and further views of Trai," Telecom Secretary M F Farooqui said.

However, he added: "But don't think that (just because) we have sought clarification means that we have not agreed... Based on Trai reply, TC will take final decision on October 29. We will try to conduct the auction by December or January."

The government has to conduct the third round of spectrum auction following a Supreme Court order in 2G case directing that all the radiowaves freed from the cancellation of 122 licences in February 2012 should be auctioned.

Another set of auction for 900 Mhz has to be conducted as some of the radiowaves in this band are held under old telecom licences which will start expiring from November 2014.

The government expects to garner around Rs 11,000 crore from the spectrum auction.

Trai justified the reduction in spectrum price and showed various methodologies used for arriving at final price.

The regulator has suggested there should be no auction as of now for the spectrum (800 MHz) used by CDMA operators as there was no demand for these radiowaves in the auction last year, and only one company participated in March 2013 auction.