Telecom panel moots higher spectrum auction base price of Rs 1,763 crore

GSM mobile operators are disappointed with the Telecom Commission’s proposal to increase the reserve price for the next round of spectrum auction from the amount recommended by TRAI in September.

While the telecom regulator had suggested a base price of Rs 1,496 crore for 1 MHz of pan-India spectrum in the 1800 MHz band, the Commission, the highest decision-making body in the Department of Telecom, on 6 November pegged the price at Rs 1,763 crore.

The higher price for pan-India spectrum is due to a 25 per cent increase in the reserve fee for eight circles, including metro and category A circles such as Maharashtra, Andhra Pradesh and Tamil Nadu. The Commission has, however, accepted the reserve price suggested by TRAI for the remaining 14 circles in the 1800 MHz band.

In the 900 MHz band, the Commission has proposed to increase the reserve price by 25 per cent in Delhi, Mumbai and Kolkata. This frequency band is currently held by incumbent operators whose licence is set to expire next year. A higher base price would mean that players such as Bharti Airtel Ltd, Vodafone India Ltd and Idea Cellular Ltd will have to pay more if they want to retain this spectrum band.

Source: http://cablequest.org/news/telecom-news/item/3480-telecom-panel-moots-higher-spectrum-auction-base-price-of-rs-1,763-crore.htmlSource: http://cablequest.org/news/telecom-news/item/3480-telecom-panel-moots-higher-spectrum-auction-base-price-of-rs-1,763-crore.html