DoT panel ask TRAI to review pricing of 800MHz CDMA spectrum

A committee set up by the Department of Telecom has asked the telecom regulator to review its proposal on pricing spectrum in the 800 MHz band. The panel has said TRAI’s position was contradictory to the earlier position it had taken while pricing another spectrum band. The telecom regulator had proposed a 50 per cent increase in the reserve price to 2,685 crore per MHz in the 800 MHz band.

This frequency band is currently being used for CDMA mobile service but TRAI said pricing should be higher as it can be used for data services using 3G and 4G technologies. In the auctions held in March 2013, the reserve price was set at 1,820 crore per MHz.

According to the DoT panel, the price was increased by TRAI by linking the value of 800 MHz band with the final bid price received for the 1,800 MHz and 900 MHz bands in the auctions held in February.

However, the panel pointed out that the same TRAI had argued earlier, while setting the base price for the 1,800 MHz band, that price determined in one auction should not be used to fix the reserve price for the next round of bidding.

The panel in its report to the DoT has asked for TRAI to explain the contradicting stance.

It has found fault with TRAI’s proposal to sell at least one contiguous chunk of 5 MHz in the 800 MHz band for new players. The panel said there wasn’t enough airwaves to sell 5 MHz in all the 22 circles.

TRAI’s proposal was based on the assumption that spectrum given to MTNL and BSNL should be taken back and put in the auction. Also, Tata Teleservices has offered to surrender part of its CDMA spectrum holding.

However, the panel said neither BSNL nor MTNL was willing to give back spectrum. Tata Tele’s spectrum can also not be taken for sale because the company has filed a case in Supreme Court.

The committee also noted TRAI has not given any proposal on the spectrum usage charge to be imposed for the 800 MHz frequency band.

Source: http://cablequest.org/news/telecom-news/item/4759-dot-panel-ask-trai-to-review-pricing-of-800mhz-cdma-spectrum.html
Source: http://cablequest.org/news/telecom-news/item/4759-dot-panel-ask-trai-to-review-pricing-of-800mhz-cdma-spectrum.html