The Department of Telecommunications (DoT) has approached the Empowered Group of Ministers (EGoM) on telecom to take a decision on the pricing and auctioning of CDMA spectrum in the 800 MHz band.
In a communication to the EGoM, the DoT has stated since the Telecom Regulatory Authority of India has declined to propose a reserve price without undergoing a fresh consultation, it was for the EGoM to take a call on the matter. Further, DoT has also asked the EGoM to approve the Telecom Commission?s proposal on spectrum pricing in the 1800 MHz and the 900 MHz bands. While TRAI had recommended a reserve price of Rs 14.96 billion per MHz in the 1800 MHz band, the Telecom Commission has suggested a reserve price of Rs 17.65 billion.
In addition, the Telecom Commission which is scheduled to meet on November 22, 2013 has to take a decision on spectrum usage charges as well. Earlier, DoT had proposed to de-link the issue from the upcoming auction. The TRAI had suggested a flat spectrum usage charge of 3 per cent to be imposed on all the operators. The regulatory body?s proposal was opposed by DoT on grounds that it would amount to unsettling the current level playing field for the operators. Currently, operators have to pay spectrum usage fee of 1 per cent to 8 per cent of their annual revenues based on the quantum of spectrum held by them.
