Spectrum base price costly but not deterrent: Khullar

The TRAI Chairman has said that the base price set for buying spectrum was on the higher side but it wasn’t a deterrent for companies to bid.

“As for Rs 14,000 crore as a reserve price that the government has set, it is expensive but I don’t think it is a deterrent and even at Rs 18,000 crore people were going to bid. All in all, I don’t see any problem in the auction,” TRAI Chairman Rahul Khullar told the press.

The minimum price of Rs 14,000 crore for 1800 Mhz band and Rs 18,200 for 800 Mhz was based on the initial recommendation made by TRAI. The UAE—based telecom company Etisalat, whose permits Indian telecom venture Etisalat DB were cancelled by the Supreme Court, has proposed a reserve price of Rs 1,658 crore but has taken a decision not to participate.

Another firm, Sistema Shyam’s licences have also been quashed but the company has decided to continue its operations. The company wants the reserve price be kept at Rs 1,658 crore for all India spectrum.

Telecom companies are against the the price recommended by TRAI. They believe the telecom tariffs become almost double as a result. “Our own estimate say that its (tariff increase) between 5 to 6 paisa. That too if you make all sorts of assumptions about repricing of spectrum, one—time charge, payment of excess spectrum and you factor in all re—pricing for next 20 years,” the Trai Chairman Khullar said.

Source: http://cablequest.org/news/broadband-and-iptv-news/item/207-spectrum-base-price-costly-but-not-deterrent-khullar.html
Source: http://cablequest.org/news/broadband-and-iptv-news/item/207-spectrum-base-price-costly-but-not-deterrent-khullar.html