The Telecom Regulatory Authority of India (TRAI) has communicated to the government and the Department of Telecommunications (DoT) that it is not in a position to provide recommendations regarding the reserve price for CDMA spectrum within 15 days as per the directions issued by DoT.
According to the regulatory body, it has already given its recommendations on the subject twice i.e. the maximum number of times that the government can seek its opinion on the same issue under the TRAI Act. In fact, DoT will now have to send a fresh reference if it wants the TRAI to give recommendations on pricing of the spectrum in the 800 MHZ band which is used for providing CDMA services.
Earlier, the DoT had asked the regulatory body to propose the likely reserve price for spectrum in the 800 MHz band within 15 days. In a communication to DoT, Rajeev Agrawal, secretary, TRAI, has stated, ?The Authority notes with concern that there is a suggested time limit, albeit as a preference. There is no provision in the TRAI Act which enables the stipulation of time limits. The DoT, on the other hand, wants to finalise the base price for the spectrum in the 800 MHz band so that it can be put up for auction along with spectrum in the 1800 MHz and the 900 MHz bands by early 2014.
However, TRAI in its recommendations had opposed DoT?s proposed move to auction spectrum in the 800 MHz band and instead it had suggested that the spectrum be used for by the operators for offering GSM services. According to the regulator, in the last round of the spectrum auction, there were not many takers for CDMA spectrum. Subsequently, the Telecom Commission overruled TRAI?s suggestion on the grounds that that keeping spectrum in the 800 MHz band unsold would result in foregone revenues for the government.
TRAI in its letter to DoT has added that with the Telecom Commission taking a final decision on the matter there cannot be a continued reference to TRAI?s earlier recommendations. It is now for the government to take a final decision on the matter.
