The Department of Telecom has sent the suggestions made by the Planning Commission on spectrum pricing to the Empowered Group of Ministers.
The Planning Commission had warned that the Government’s credibility will be adversely impacted if the next round of spectrum auction also fails to attract bidders. The Commission had recommended that instead of arbitrarily reducing the reserve price of spectrum, the Government should seek the views of the Telecom Regulatory Authority for the next round of auction.
Montek Singh Ahluwalia, Deputy Chairman of the Planning Commission, in a letter to the Telecom Ministry, had also pitched for allowing spectrum trading to enhance the value of spectrum. The EGoM is expected to meet soon to discuss these proposals although Government sources said that the Telecom Ministry is not keen on taking the TRAI’s views on the issue.