The Department of Telecommunications (DoT) is soon planning to take a final decision on the pricing of 800 MHz band. However, the department will not be considering Telecom Regulatory Authority of India?s (TRAI) proposal to explore creation of an extended GSM (e-GSM) band by utilising part of spectrum in the 800 MHz band, as the issue is yet to be examined technically.
The decision on pricing of spectrum in the 800 MHz band has been pending since TRAI issued recommendations for the same in February 2014. TRAI had recommended a reserve price of Rs 26.85 billion per MHz of spectrum in the 800 MHz band. This reserve price is a 49 per cent increase from the March 2013 base price, as it has been explored that the spectrum can be used for high-speed 4G services. DoT?s decision will help auctioning the spectrum in this band along with those in the 1800 MHz and 900 MHz bands scheduled for February 2015.
The implementation of e-GSM band has been strongly opposed by the CDMA and dual technology operators, but has been backed by GSM players. Recently, the Association of Unified Service Providers of India (AUSPI) had also raised concerns over the creation of e-GSM band citing that it would grossly undermine the business case of CDMA operators, who have already invested significant capital in rolling out CDMA networks in the 800 MHz band.
