The cloud has lifted a bit over the contentious issue of fixing of reserve price for the upcoming 2G auctions.
The Telecom Regulatory Authority of India (Trai), following a discussion with stakeholders on Tuesday, has suggested that it could be fixed at 40-60% of the estimated value of the spectrum based on global benchmarks. Also, it felt that a circle-specific approach to determining spectrum value is more prudent than a pan-India reserve price.
On allowing spectrum trading, Trai said it’s favourably disposed towards the issue and invited comments on possible framework over the next three days.
The regulator is likely to recommend the changes before the next spectrum auction so that service providers can factor in the same in their bids. Final recommendations from Trai on spectrum valuation and reserve pricing are expected in a fortnight.
This follows DoT’s communication to Trai on July 10, seeking its recommendations on spectrum reserve prices after the last 2G auction failed to generate much interest from telcos due to a high price level. Trai then started the consultation process by inviting comments from all stakeholders concerned.
Further, on the premium pricing differential for 900 Mhz over 1800 Mhz spectrum, Trai said this should be determined with a circle-specific approach using an opportunity cost model.
Vodafone, on its part, has agreed to pay the government Rs 4,000 crore for continuation of its operations in three key circles for another 20 years, a quarter of the reserve price set in the March auctions, and said it was willing to pay 1.3 times the reserve price of 1800 Mhz spectrum to keep its existing 900 Mhz spectrum.
On the issue of spectrum usage charge (SUC), while Vodafone is willing to pay up to 3% of adjusted gross revenue (AGR), which should be fixed as per annum fee for all telcos to avoid anomalies, COAI and Trai are of the view that the SUC should not exceed 1% of the AGR, as it is just a nominal fee. Else, depending on how much spectrum telcos have, the SUC could go up to 6% of AGR.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}