Telecom companies made last ditch efforts to get their point across on 2G spectrum to the Empowered Group of Ministers, which is scheduled to meet on Tuesday.

While the Cellular Operators Association of India (COAI) has shot off another letter on cancelling GSM spectrum given to Tata Teleservices, the rival Association of Unified Telecom Service Providers of India (AUSPI) focussed on core issues around the proposed auction.

The COAI, which represents incumbent GSM players, said that the Supreme Court order was clear on the issue of spectrum awarded to Tata Teleservices.

“Any exclusion from spectrum allocations quashed would constitute appalling disloyalty to the letter and spirit of the court order,” COAI said in a letter to Mr Pranab Mukherjee, Minister of Finance and Chairman of the GoM. This is the second letter the industry association has written on this issue. Both Tata Teleservices and AUSPI have dismissed the claims made by the COAI.

AUSPI had also written to the GoM that the policy of permitting dual technology was a settled issue.

Pricing issue

AUSPI has written another letter on spectrum pricing saying that the proposed reserve price per MHz for 1800 MHz band was extremely high.

“For optimal outcome of fair auctions based ultimate price, reserve price level should be such that it should lead to free market discovery of ultimate price by making available fair number of slots of 1800 MHz for 2G Auction. In this connection, we suggest that the reserve price should be fixed at the level of reserve price of 3G i.e. Rs 3,500 crore for 5 MHz,” AUSPI said.

Meanwhile, the TRAI is expected to make a presentation to the GoM on the impact of its proposals on the industry, consumers and Government revenue. The GoM will take a final view on reserve price, number of slots to be auctioned and other issues including whether to allow staggered payment to winners.

>tkt@thehindu.co.in

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