TRAI declines to set price for CDMA spectrum

The Telecom Regulatory Authority of India (Trai) has refused to suggest a base price for the auction of spectrum in the 800-Mhz band within a 15-day time-frame as was asked by the department of telecommunications (DoT).

Instead, the regulator has asked the DoT to clarify whether the reference is fresh or in continuation of the one in which it has already said and clarified that there should be no auctions in this band. It has said that if it is a fresh one then a fresh exercise needs to be initiated where DoT cannot put any time-cap. In case, it is a continuation of the previous one, as the language of the DoT letter suggests, Trai said that as per the Act, there's no provision for seeking a clarification twice.

In September, Trai proposed up to 60% cut in the base price for spectrum used by GSM players like Airtel and Vodafone, but recommended no auction of the 800-MHz spectrum used by CDMA players.

Trai contended that it was not prudent to sell spectrum in the 800-Mhz band since the ecosystem was on decline and there was no demand for it. Later, when DoT sought a review of its stand, the regulator stuck to its position stating that the Supreme Court was against selling national resources below market price.

In the March auctions, Sistema-Shyam was the only bidder that got radiowaves to operate in eight circles for Rs 3,639 crore after a 50% discount was made on the reserve price.

Despite Trai sticking on its stand, DoT, in a letter dated November 12, asked the regulator to recommend the reserve price for the 800-MHz band in 15 days.

In its reply, through a letter dated November 14, Trai stated that it has responded in full on the original reference made by DoT and if the government wants it to suggest a price for 800 MHz spectrum, it should come as a fresh reference so that process can be started again.

“The reference dated November 12 is a new reference and Trai will be able to proceed with the matter if it is clarified and confirmed that this is fresh statutory reference seeking recommendation of the authority,” the regulator said.

 “There is no provision in the Trai Act that enables the stipulation of time limits. There is also no provision that allows for a preference on time limits to be indicated by the DoT… Hence, it is clearly not appropriate for DoT to presume that it can suggest a time limit, even as a preference,” Trai said.

"The authority is of the opinion that the action on original reference is over and done with. There can be no continuing reference to that earlier reference. It is now for the central government to take a final decision," the regulator added.

Source: http://cablequest.org/news/telecom-news/item/3598-trai-declines-to-set-price-for-cdma-spectrum.html
Source: http://cablequest.org/news/telecom-news/item/3598-trai-declines-to-set-price-for-cdma-spectrum.html