TRAI for cut in spectrum auction floor price

With successive rounds of spectrum auctions finding few takers because of high reserve prices, the telecom regulator on Monday recommended a sharp 60 to 80 per cent cut in the floor price of mobile phone airwaves for an upcoming auction.

The Telecom Regulatory Authority of India (TRAI) suggested a pan-India reserve price of Rs 1,496 crore per MHz in the 1800 band, down from the base price of Rs 3,640 crore in the previous auction.

In the 900 MHz band, which is also used by GSM players, it recommended a reserve price of Rs 288 crore per MHz for Delhi, Rs 262 crore for Mumbai and Rs 100 crore for Kolkata.

These rates are about 80 per cent lower than the previous reserve price. Most telecom firms had stayed away from bidding in the previous two auctions, saying the prices were high.

Telecom Minister Kapil Sibal said the recommendations are reasonable and in recognition of market realities.