The new Chairman of Telecom Regulatory Authority of India on Tuesday defended its 2G spectrum proposals at a meeting of the Joint Parliamentary Committee.
This assumes significance given that the Telecom Commission has asked TRAI to give an analysis on the impact of its pricing proposal. Telecom companies, which are protesting against the TRAI proposals, were hoping for a review.
But at today's JPC meeting TRAI contested the telecom companies' arguments that if implemented, the recommendations would result in increase in mobile charges. The TRAI Chairman, Dr Rahul Khullar, and former chairman, Dr J.S. Sarma, appeared before the panel.
The JPC Chairman, Mr P.C. Chacko, told
“We are trying for a presentation by another former chairman of TRAI. Members are yet to make their queries on the presentation made by TRAI today,” Mr Chacko said.
Mr Chacko said TRAI told the panel that the new set of recommendations was a result of an extensive field study carried out by the regulator.
TRAI had suggested a base price of Rs 3,622 crore per megahertz for the 1800 Mhz band. Dr Khullar is learnt to have told the panel that the amount is 10 times the price paid by operators in 2008. Members said they will ask the Chairman why such an amount was not suggested in 2008, when the 2G spectrum was sold on first-come-first-served basis.
Dr Khullar contested the telecom companies' claims that the decision will impact the consumers as the prices are likely to increase.
“TRAI provided us a calculation which said if implemented, these recommendations could result in a maximum increase of five paisa for a call in the next 20 years,” Mr Chacko added. He said members will be allowed to seek clarifications in the next meetings.
Calculations made by the regulator maintained that the per minute cost impact (including interest) reduces from Re 0.044 per minute in 2012-13 to Re 0.017 per minute in 2031-32.
Apart from telecom companies, the Commerce Minister, Mr Anand Sharma, and the Telecom Commission had also questioned the new spectrum recommendations by TRAI.