Trai sticks to 60% spectrum base price cut proposal
24 Oct 2013 12:15 AM GMT
Telecom regulator Trai on Wednesday reiterated its recommendations for a sharp 60 per cent cut in the reserve or base price for sale of mobile phone spectrum in an upcoming auction.
Responding to clarifications sought by the Department of Telecommunications, the Telecom Regulatory Authority of India (Trai) reiterated that the auction start price or the reserve price for spectrum in the 900 megahertz or MHz band in some key cities be cut by 60 per cent.
It also suggested a 37 per cent cut in the reserve price for spectrum in the 1800 MHz band.
Trai stood by its stand of not auctioning 800 MHz band in the upcoming auction saying there is a large gap in the worth of spectrum in its present use as against its potential use and ‘no hasty decision’ should be taken on the matter.
Questioning the sharp cut, a DoT panel had asked Trai to reconsider its recommended reserve price.
DoT was of the view that the valuation did not appear to reflect the value of the liberalised spectrum, which has a much greater potential than 2G over the next 20 years.However, in its response, Trai reiterated its approach of calculating the reserve price.
‘The methodologies used by the Authority are grounded in economic theory and have widespread international acceptance,’ it said.
Responding to clarifications sought by the Department of Telecommunications, the Telecom Regulatory Authority of India (Trai) reiterated that the auction start price or the reserve price for spectrum in the 900 megahertz or MHz band in some key cities be cut by 60 per cent.
It also suggested a 37 per cent cut in the reserve price for spectrum in the 1800 MHz band.
Trai stood by its stand of not auctioning 800 MHz band in the upcoming auction saying there is a large gap in the worth of spectrum in its present use as against its potential use and ‘no hasty decision’ should be taken on the matter.
Questioning the sharp cut, a DoT panel had asked Trai to reconsider its recommended reserve price.
DoT was of the view that the valuation did not appear to reflect the value of the liberalised spectrum, which has a much greater potential than 2G over the next 20 years.However, in its response, Trai reiterated its approach of calculating the reserve price.
‘The methodologies used by the Authority are grounded in economic theory and have widespread international acceptance,’ it said.
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