The Telecom Regulatory Authority of India (TRAI) has reviewed its recommendations on the valuation and reserve prices of spectrum in the 2100 MHz band. Further, the regulator has reiterated its earlier recommendations on the spectrum reserve prices of 2100 MHz band for the forthcoming auctions. This comes after the Department of Telecommunications (DoT) had asked TRAI to reconsider its suggestions on the pricing of 2100 MHz spectrum on January 8, 2015.
TRAI had suggested a base price for spectrum in 2100 MHz band to be Rs 27.2 billion per MHz of spectrum. However, DoT was in favour of charging a higher reserve price of Rs 38.99 billion per MHz for spectrum in the 2100 MHz band.
Also, the telecom regulator has maintained its recommendation of auctioning spectrum in the 2100 MHz band simultaneously with that in the 800 MHz, 900 MHz and 1800 MHz bands. TRAI is of the view that a split auction of the 2100 MHz spectrum (first in February 2015 along with other bands and the other after some spectrum in the band is available from the defence ministry) will create artificial scarcity and increase the market price of the spectrum for February 2015 auction.
Further, TRAI has reiterated that an auction-specific cap be placed such that no bidder is allowed to bid for more than two blocks in any circle, given that only three-four blocks are available in that particular circle.
