DoT panel suggests over 15 pct increase in spectrum price

New Delhi | December 06, 2014 12:54 AM

An internal committee of the department of telecommunications (DoT) has suggested a 15-25% hike in 900 MHz...

An internal committee of the department of telecommunications (DoT) has suggested a 15-25% hike in 900 MHz and 1,800 MHz band of spectrum from the reserve price recommended by Telecom Regulatory Authority of India (Trai).

A DoT committee has recommended hike in price for metros in A circles for 900 MHz band with increased pan-India price of Rs 3,693 crore per MHz from Rs 3,004 crore recommended by Trai. Similarly, for 1,800 MHz, the DoT committee has suggested pan-India price of Rs 2,419 crore per MHz, while Trai had recommended  Rs 2,138 MHz.

Trai has proposed Rs 3,004 crore per Mhz for the premium 900 MHz band and Rs 2,138 crore per MHz for the 1,800 MHz band of spectrum. The new Trai’s base price are 15% and 10% higher for 900 MHz and 1,800 MHz band of spectrum from the base price fixed by it at the February auctions. Even as DoT had asked Trai to review its new base price, Trai had reiterated and stuck to  recommended base price.

The DoT’s committee recommendation comes ahead of the Telecom Commission’s (TC), an inter-ministerial panel of the telecom ministry, meet on December 8 to deliberate on the next round of spectrum auction proposed to start on February 23 next year. The commission will discuss the recommendations to take a call on the reserve price and other issues concerning the upcoming auction.

The committee has also suggested that reserve price should be fixed at full valuation of spectrum. It has also disagreed with Trai’s recommendations on capping price of 900 MHz. Atleast 184 MHz of spectrum in 900 MHz band and 104 MHz in 1,800 MHz band would be auctioned.

By Sanjay Singh

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