Millennium Post

DoT-Trai disconnect on how to calculate spectrum price

Disagreeing with TRAI approach, a DoT panel has suggested applying the same method used in the February auction for determining the spectrum base price in the next round of sale of radiowaves as well.

The DoT committee, formed to study TRAI recommendations on valuation and reserve price of 1800 Mhz—widely known as 2G — and 900 Mhz spectrum band for the next round of auction, has observed deviation from the approach used earlier by the regulator and logic given for it. 'The committee is of the view that the same approach for arriving at reserve price for auction of spectrum during February 2014 may be incorporated in the methodology for arriving at reserve price of 1800 Mhz,' an official source said.

TRAI has suggested about 10 per cent higher base price than what was received in February auction.
The committee has found that using the method suggested by will leads to about further 3-20 per cent higher base price of spectrum across some circles compared to the rates suggested by the regulator.

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.
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