GSM mobile operators have asked TRAI to set the same reserve price for spectrum in the 900 MHz and the 800 MHz band for the upcoming spectrum auctions in February 2015. The Telecom Regulatory Authority of India (TRAI) had earlier recommended a reserve price of Rs.26.85 billion per MHz of spectrum in the 800 MHz band.
According to the GSM operators, the base price for spectrum in the 1800 MHz band should be the same as recommended by TRAI in September 2013. But in case of the service areas where the auctions closed at reserve price, the price may be reduced by 20 per cent.
On the other hand, CDMA operator Sistema Shyam Teleservices (SSTL) has stated that the reserve price for spectrum in the 900 MHz band should be 1.65-2 times the price of spectrum in 1800 MHz band and the reserve price for spectrum in the 800 MHz and 1800 MHz bands should be the same. It further suggested that the reserve price for 1800 MHz band should be 80 per cent of the market value realised in the auctions held in February 2014.
The operators have also asked for the availability of more spectrum in the auctions, along with contiguous blocks of spectrum. According to Bharti Airtel, the quantum of spectrum available for auction in 13 out of 18 service areas will not allow operation of standalone networks and is not sufficient to carry out a fair auction.
As per the regulatory authority, about 184 MHz of spectrum in 900 MHz band and 104 MHz in 1800 MHz band is likely to be put up for the auction in February 2015.
