DoT to hold talks with operators to reduce the reserve price of 2G spectrum

The issue of identifying a reserve price for spectrum in the upcoming auctions continues.

Prior to this, the telecom industry had expressed their concerns over the Telecom Regulatory Authority of India (TRAI?s) recommendations on pricing and refarming of spectrum.

The government?s proposal to ask telecom players pay for their existing spectrum will enable the government to collect about Rs 1,000 billion from existing operators.  All the existing telecom licences in the country are valid for 20 years. Unlike GSM operators like Bharti Airtel and Vodafone India, dual technology companies have more than 10 years to go before their permits expire.

Now, the Department of Telecommunications (DoT) has reportedly expressed its willingness to hold discussions with operators and reduce the reserve price for airwaves in the upcoming 2G spectrum auction.

DoT will look at reducing the reserve price for auction of spectrum if telecom operators agree to match the auction-determined price for their frequencies over the remaining term of their licences.

DoT is also looking at diluting its proposals related to refarming of spectrum, which would have required operators like Bharti Airtel, Idea and Vodafone to surrender 900 MHz airwaves and bid for the less-efficient 1,800 MHz frequencies.