Telecom Regulatory Authority of India (TRAI) stood by its earlier views on auctioning of bands and their reserve prices, including that of 700MHz, which is fixed at ₹11,485 crore per megahertz.

The regulator on Monday said reserve pricing of all the bands was considered after taking into account all the aspects.

On April 1, the DoT had sought clarifications/reconsideration on some of the recommendations after a Telecom Commission meeting on March 28.

The DoT had asked for reconsideration on auctioning of 70 MHz, as to whether spectrum of 35+35 MHz could be split in two phases -- 20+20 MHz in first phase and 15+15 MHz in second phase.

TRAI said in its response, “Any delay in award of spectrum or non-utilisation of spectrum will turn into irreversible loss to the government (in the form of levies and taxes) and to the society (in the form of better services, contribution to other related activities).”

“Even if it is assumed that greater revenue can be generated by auctioning a part of spectrum in 700 MHz band in future, deferring the revenue receipts now may not be of economic prudence, keeping in view the impact of telecom services on the other sectors and overall GDP growth,” it said.

The 700 MHz band is a sought after band for LTE deployment around the world due to its efficiency and higher penetration inside buildings. Presently, India is way behind in the broadband penetration and the internet speeds in the world and 700 MHz band can prove to be a vital band for proliferation of broadband, TRAI mentioned.

According to analysts, the upcoming auction in July could net the Centre over ₹5 lakh crore if all spectrum gets sold.

For harmonisation, TRAI said there is an opportunity cost in keeping the spectrum idle, in terms of other taxes and levies such as service tax and corporate tax and therefore, the harmonisation exercise should be expedited in 1,800MHz band.

“By carrying out spectrum harmonisation amongst telecom service providers and defence, approximately 201 MHz of additional spectrum in 1,800 MHz band and 26.25 MHz additional spectrum in 800 MHz band can be made available for the auction,” it added.

TRAI reiterated its earlier recommendation that there is an urgent need of audit for all allocated spectrum. Both commercial as well as spectrum allocated to various PSUs/government organisations and that should be done by an independent agency.

“Audit by an independent agency through a transparent and objective 25 mechanism is desired. However, if DoT intends to carry out audit by itself, it should be completed in a time-bound manner,” it added.

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