TRAI?s recommendations go against the stated principle of the Government to offer affordability, fairness and level playing field.
For 2G spectrum pricing, TRAI while moving away from its earlier arbitrarily linked 3G pricing levels, has now in many cases gone beyond 3G values. This goes against Honorable Minister and Government?s acknowledged position that 3G is significantly more efficient than 2G and services must remain affordable for the masses. There seem to be huge inconsistency in terms of the differences of prices in various circles. For instance, upto 6.2MHz the price vis-a-vis 3G prices range from a low of 16 per cent to a high of 208 per cent, while beyond 6.2MHz, it ranges from a low of 24 per cent to a high of 868 per cent. This defies logic.
TRAI has finally accepted the principle that ultimate discovery for the spectrum pricing should be through an open, fair and transparent auction. We welcome this recommendation. We, however, fail to understand the reason for linking the auction price only to spectrum beyond 6.2 MHz. The price discovered through a fair and open auction must apply to all spectrum allocations.
Spectrum is spectrum and there is no rationale for artificial distinction between spectrum up to 6.2MHz and beyond. The spectrum allocated beyond 6.2MHz is as per the government policy and serves the economically weaker sections of the society. Hence this should not attract any higher price.
The proposed pricing of spectrum renewal fails to provide a level playing ground between the older operators and those who have got licenses in 2008. Thus, while 2008 licensees walk away with spectrum for twenty years at 2001 pricing, the older operators whose licenses come up for renewal in few years will have to pay exorbitant one time charges. Level playing field demands that the price for spectrum allocated in 2008 to the new operators and cross over technology operators, should be the same, whatever is implemented for the renewal of licences.
Bharti makes a strong appeal to the Honorable Minister and the Department of Telecom to ensure level playing field amongst all operators and ensure that all types of 2G spectrum pricing ? 800 CDMA, 900 GGSM, 1800 GSM ? be given similar treatment. Also, all spectrum given under 2G bands ? GSM as well as CDMA must be clubbed together and considered as ?total allocated spectrum? for purpose of pricing and eligibility.
We are confident the Honorable Minister will come out with a spectrum pricing policy that ensures fairness, is non-discriminatory and creates a level playing field for all operators.
