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DoT shoots down TRAI's proposal for more spectrum for telcos

Telecom panel asks the regulator to come back with fresh recommendation of pricing

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Hopes of telecom firms looking to expand their network by bidding for spectrum in the 2,100 megaHertz (MHz) band, freed up from defence, and 900 MHz band from state-owned BSNL, were dashed with the inter-ministerial telecom panel Telecom Commission (TC) asking the Telecom Regulatory Authority of India (TRAI) to review its recommendations.

The panel has asked the regulator to come out with fresh proposals as vacating of airwaves from defence and BSNL would be time consuming and could delay the spectrum auction to be held in February next year.
If the TRAI were to act on this and alter its suggestion, it would mean lesser quantum of spectrum for auction, which in turn could inflate the base price suggested by it.

A senior official of the Department of Telecommunications (DoT) said as it was difficult to immediately free up spectrum from the sources recommended by the TRAI, as the quantum to be auctioned will change which in turn would affect its pricing.

"We have asked TRAI to come out with fresh recommendations on pricing," he said.

The base price recommended by the telecom regulator for spectrum in the 1800 MHz band is Rs 2,138 crore and Rs 3,004 crore in the 900 MHz band.

Rajan Mathews, director general of the GSM lobby body Cellular Operators Association of India (COAI), said the outcome of Friday's meeting was a minor setback but the industry players were not disheartened and would knock at the Prime Minister's Office's door.

"What we are saying is that to do what the TRAI has recommended needs political will. That can be enforced only at the top-most rung (PMO). We will approach the PMO to take a hard look at what the industry is asking for. The Prime Minister's vision of smart city and digital India is heavily dependent on expansion of mobile and broadband services in the country," he said.

Mathew said the continuity of business of many of the telecom companies was dependent on the upcoming auction, and was all for waiting for another 2-3 years if sufficient spectrum was not readily available now.

"Yes, that is one option. If you (government) can't get spectrum then there is no harm in waiting for 2-3 years. The operators, whose licences are coming up for renewal, can be allowed to operate by charging them for it on a retrospective basis. So that there is orderly transition," he said.

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