The Telecom Regulatory Authority of India (TRAI) has recommended fixing the price for 6.2 Mhz of pan-India start-up 2G spectrum at Rs 109.72 billion, more than six times the present cost of Rs 16.58 billion.
In its recommendations to the Department of Telecommunications (DoT), TRAI has also said that every Mhz of additional spectrum (on an all-India basis) beyond the contracted limit of 6.2 Mhz would cost Rs 45.71 billion.
Most of the operators, including Bharti airtel, Vodafone Essar, Idea Cellular, Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) hold extra spectrum beyond 6.2 Mhz and the new norms would put a huge financial burden on these operators.
In addition, the licences of some of the operators, including Bharti airtel, are due for renewal after completing 20 years periodicity in several circles. Such companies would have to pay to renew their licences as per the new norms recommended by TRAI.
According to the report, the spectrum prices for both categories, up to 6.2 Mhz and beyond 6.2 Mhz, vary from circle to circle. In the category of up to 6.2 Mhz of spectrum, the prices of one Mhz varies from Rs 76 million in Jammu and Kashmir to Rs 1.87 billion in Tamil Nadu.
In the category of beyond 6.2 Mhz of spectrum, the price varies form between Rs 228 million per Mhz in Jammu and Kashmir to a maximum of Rs 4.31 billion in Andhra Pradesh. The revised prices recommended by TRAI are effective from April 1, 2011.
