The Telecom Telecom Regulatory Authority of India?s (TRAI) recommendations on the Auction of Spectrum continue to face difficulties.
After facing criticism from telecom operators, the recommendations had come under the scrutiny of the Telecom Commission.
For example, the Commission requested the regulator to explain the basis on which it recommended that only 5 MHz of airwaves be auctioned, as well as how it identified a base price for the same.
Besides, TRAI?s suggestion to make rollout obligations mandatory had also been questioned by the Commission.
Now, the regulator?s recommendation to permit operators to mortgage spectrum and borrow funds has come under the Commission?s scanner.
In this context, the Commission has said that the Department of Telecommunications (DoT), the Ministry of Finance and the Ministry of Law and Justice are required to reach a consensus before the regulator?s recommendation can be passed.
TRAI had recommended that operators be permitted to mortgage spectrum to registered Indian financial institutions against borrowings. The regulator, however, added a condition that in the event of default of the liability, the financial institution may auction the airwaves under the supervision of DoT and all proceeds from the sale be remitted to the government.
That apart, the Commission has said that TRAI?s recommendations on spectrum re-farming require re-examination.
The Commission has asked the regulator to identify a suitable alternative approach to re-farm spectrum to ensure that substantial amounts are not left unutilised.
The Commission has also asked TRAI to explain its recommendations pertaining to this subject.
