TRAI recommends over six-fold cost for 2G spectrum
Virtually in line with estimated loss pointed out by CAG in 2G spectrum allocation, telecom regulator TRAI has recommended Rs 10,972.45 crore for a pan-India license with 6.2 Mhz spectrum. Going by this valuation, six new pan-India licenses given in 2008 would have garnered Rs 65,834.7 crore to the government along with additional revenue from other firms who were given licences in fewer circles.The CAG had estimated loss of up to Rs 1.76 lakh crore from 2G spectrum allocation.This had included new licences, dual technology licences and revenues from additional spectrum beyond the contracted limit of 6.2 Mhz held by various operators especially BSNL, Bharti and Vodafone.The Telecom Regulatory Authority of India (TRAI) has also recommended ‘one-time’ entry fee for additional spectrum beyond 6.2 Mhz.
In fact the regulator has classified valuation of spectrum in two categories. There are different prices for spectrum up to contracted limit of 6.2 Mhz and different for additional airwaves.The spectrum price varies from circle to circle in both categories. In case of contracted limit, the price ranges from Rs 7.60 crore per Mhz in Jammu and Kashmir to Rs 187.38 crore in Tamil Nadu.For the additional spectrum the range is Rs 22.89 crore in Jammu and Kashmir to Rs 431.95 crore in Andhra Pradesh.These revised prices should be made applicable with effect from 1st April 2010 on pro-rata basis depending upon the number of years left for licences to expire, the TRAI said adding that any licence coming up for renewal would have to pay for spectrum based on new price.
These prices are for spectrum in 1800 Mhz band.In November 2010, TRAI had recommended cancellation of 38 licenses and legal examination of the feasibility of cancelling 31 more licenses.These licenses hold spectrum in frequency band of 1800 Mhz as well as 800 Mhz bands.If these cancellations take place, it will then be possible for the government to auction surplus spectrum and treat the auction price as the relevant price of spectrum beyond 6.2 Mhz for the given licensed service area, TRAI said.This spectrum pricing methodology has been arrived at by experts roped in by the telecom regulator.While the figures given by the experts may be adopted, it should be done with full realisation that these are estimated figures and may or may not always match the exact market price, TRAI said.
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on Feb 9 2011. Filed under Breaking News, Business.
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