The Telecom Commission has decided to send back the Telecom Regulatory Authority of India’s (TRAI) recommendations pertaining to the pricing of spectrum in the 2100 MHz band, for a review. An internal committee under the Department of Telecommunications (DoT) looking into the matter, has suggested a 43 per cent increase in the price suggested by TRAI.
As per its recommendations released in December 2014, TRAI had suggested a base price for spectrum in 2100 MHz band to be Rs 27.2 billion per MHz. However, DoT is in favor of charging Rs 38.99 billion per MHz as reserve price in 2100 MHz band.
The committee is of the view that market determined price in the 2010 MHz band should be indexed using SBI PLR (State Bank of India-prime lending rate) and 80 per cent of that price should be fixed as reserve price for 2100 Mhz band. TRAI, using SBI PLR, worked out the indexed price at Rs 48.74 billion per MHz, 80 per cent of which stands at Rs 38.99 billion.
Now, TRAI is expected to send its final comments in this regard within 15 days, post which the suggestions will be tabled again before Telecom Commission for a final decision.
