TRAI to present spectrum price impact analysis

Telecom regulator Telecom Regulatory Authority of India [TRAI] on Thursday will make a detailed presentation to the empowered group of minister [EGoM] on the impact its proposed spectrum sale price will have on mobile telephone tariffs.

TRAI chairman Rahul Khullar has been called before to the first meeting of the reconstituted EGoM headed by home minister P Chidambaram and it is expected that the regulator may revise its earlier stand of the spectrum price impacting tariffs by 1.5-4.4 paise per call.

Mobile phone operators claim that TRAI-proposed minimum price for spectrum at over Rs 18,000 crore for pan-Indian operation will lead to doubling of existing tariffs.

Industry sources said TRAI may increase the impact on tariffs.

‘A presentation will be made before the EGoM on 12 July and only after the presentation, the document will be posted on the website to make it transparent, informed Khullar,’ Consumer Online Foundation [COF] said in a statement.

Following criticism from industry, inter-ministerial panel at telecom ministry, Telecom Commission, has asked TRAI to make presentation before EGoM, scheduled tomorrow, on the impact of minimum airwaves price recommended by it on tariffs, government revenue and future investment in the sector.

The minimum price of airwaves proposed by Telecom Regulatory Authority of India for pan-Indian operations is over Rs 18,000 crore, around 10 times more than the amount paid by old operators.
It has also recommended to fix double of this amount as minimum price for the airwaves that existing telecom operators use to provide wireless services at the time of renewal of their licences.
Next Story
Share it