2G pricing: Telecom panel to present two options to Ministers' group bl-premium-article-image

Thomas K Thomas Updated - August 11, 2012 at 06:28 PM.

The spectrum pricing formula suggested by both TRAI and an internal DoT committee will be presented to the Empowered Group of Minister for a final decision.

While TRAI had proposed Rs 18,000 crore as the reserve price for 5 Mhz spectrum, the DoT panel had proposed a 17 per cent higher fee.

The Telecom Commission will also present two options for deciding the quantity of spectrum to be sold.

A minimum of eight blocks each of 1.25 Mhz may be put up for auction in all service areas after reserving for re-farming.

In addition, a provision may also be inserted to make available another three blocks of 1.25 Mhz to meet the requirement of new entrants.

The second option is to put all spectrum available on the block, which includes 55 Mhz spectrum to be vacated by the Defence, according to the Minutes of the Telecom Commission's meeting seen by Business Line .

The TC, in its meeting held on May 27, has noted that vacation of this spectrum is crucial for the auction.

For existing players

The Telecom Commission has recommended that existing players be allowed to win a maximum of two blocks of 1.25 Mhz each while new players can bid for up to four blocks of 1.25 Mhzeach.

For CDMA operators, the Commission has proposed selling three blocks of 1.25 Mhz in the 800 Mhz band. The GoM is expected to meet on June 5 to take a view on these decisions.

On the issue of allocating additional spectrum to players with 4.4 Mhz, the Telecom Commission took a view that such operators will also have to buy spectrum through the auction.

Operators, including Reliance Communications, are looking to increase their spectrum ownership from 4.4 Mhz to 6.2 Mhz. TRAI had proposed to allocate such players through the subscriber-linked criteria but at market determined price.

>tkt@thehindu.co.in

Published on June 1, 2012 16:41