The Telecom Commission has asked the TRAI to give an analysis of the impact of the proposed spectrum pricing on the industry.
Once the TRAI gives its analysis, the Empowered Group of Ministers headed by the Finance Minister, Mr Pranab Mukherjee, will take the final view.
TRAI had earlier suggested Rs 18,000 crore as the reserve price for 5Mhz of 2G spectrum.
“The Commission took note of reserve price which TRAI has recommended and it was felt that an analysis needs to be made and presented to EGoM on the impact of spectrum price on certain parameters that have been worked out,” the Telecom Commission Chairman and Secretary, Department of Telecom, Mr R. Chandrashekhar, said after the meeting of the Commission on Saturday.
He said that a balance needs to be struck between spectrum price and three other factors – revenue to Government, tariff to consumer and viability of investment and continued attractiveness of the sector.
Mr Chandrashekhar said the DoT will also do its own analysis to be presented before the eGoM.
“We hope to work on finalising our proposition to EGoM by end of the month,” he said adding that representations made by the telecom companies will also be taken on board.
All eyes are now on the newly appointed TRAI Chairman, Dr Rahul Khullar. It will be interesting to see if he gives a different view from what the TRAI had earlier said under Mr J.S. Sarma.
“This is the first major task for Dr Khullar so the entire industry will be keenly watching which way he goes on this crucial issue,” said an industry representative.
Almost all the telecom operators, barring Reliance Infotel, have opposed the TRAI's pricing. According to top Government sources the idea of seeking a fresh analysis from TRAI could be aimed at getting the regulator to revise its proposals.
According to sources, a new view is emerging whereby the reserve price could be pegged between Rs 7,000-8,000 crore.
“Since the Government is not keen on allowing staggered payment, there is a case for a lower reserve price,” said an official source. In addition, the spectrum usage charge will be kept at three per cent instead of one per cent.
The TRAI had suggested a high reserve price with the condition that auction winners are allowed to pay the winning bid amount over a 10-year period.