Panel asks DoT to reconsider stand on some Trai proposals

The inter-ministerial panel, telecom commission (TC), has asked the department of telecommunications (DoT) to re-examine its stand on not taking back 900 MHz band of spectrum from state-run Bharat Sanchar Nigam (BSNL), which expires in 2015-16.

As per the minutes of the TC meeting which took place on December 8, the commission has asked DoT to submit recommendations on this issue in the next meeting. However, it has made it clear that any decision concerning BSNL’s 900 MHz will have no bearing on the forthcoming February 2015 auction. At least 184 MHz of 900 MHz band of spectrum has been put up for auction.

BSNL is considering seeking government grant in return for relinquishing a slice of the premium 900 MHz spectrum which the telecom regulator wants to free up for the next round of airwave auctions.

BSNL is willing to give up 900 MHz band of airwaves, but it wants the government to compensate it with nearly R2,000-crore to meet additional capex and network re-engineering costs as a pre-condition to heeding the Telecom Regulatory Authority of India’s (Trai) call and relinquishing 1.2 MHz of efficient 900 MHz spectrum in some 18 circles (barring Punjab) where its licences expire in 2015-16.

Trai earlier this year had also recommended that BSNL return 50% of its CDMA spectrum in the 800 MHz band.

The commission wants DoT to examine Trai’s recommendation on liberal use of 800 MHz band of airwaves used by CDMA operators as an extended GSM (e-GSM) band. So far, DoT has rejected Trai’s recommendation.

Meanwhile, the TC has recommended a base price of R3,693 crore per MHz for 900 MHz frequency band, which is about 23% more than R3,004 crore per MHz proposed by Trai. Similarly, for 1800 MHz, the TC has recommended R2,191 crore against R2,138 crore recommended by Trai. TC recommendations are based on pricing recommended by a DoT committee.

The commission has also finalised a base price of R3,646 crore per MHz for CDMA band, nearly 17% higher than R3,104 crore suggested by Trai.

The auction is to be conducted for airwaves in 900 MHz held by existing telecom operators Airtel, Vodafone, Idea Cellular and Reliance Communications through their licences that are expiring in 2015-16.

The base prices recommended now would be placed before telecom minister Ravi Shankar Prasad for final approval and then to the Cabinet for final approval.