TRAI sets 2G base price higher than 3G

News / Telecom

TRAI sets 2G base price higher than 3G

  • 2012-04-25 12:53:13
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News / Telecom TRAI sets 2G base price higher than 3G
The Supreme Court of India has cancelled all the licenses of carriers to whom spectrum was allotted at a much lower price by the then Telecom Minister, A. Raja. The court has also asked the Telecom Regulatory Authority of India (TRAI) to re-auction the spectrum which will be recovered at the current prices. Now Telecom regulator Trai set Rs 3,622.18 crore as base or minimum price for pan-India spectrum in the auction of radio waves

According to TRAI’s recommendation, For the the 900 mega hertz band (2G) a base price at Rs 7000 crore, which is twice the base price set for a 3G spectrum. For 700 megahertz band, it has been set at Rs 14,000 crore which is 4 times the 3G reserve price. TRAI recommends auction of 30 Mhz of 700 Mhz band, 10 Mhz of 800 Mhz band, 15 Mhz of 900 Mhz band, 15 Mhz of 1800 Mhz, 5 Mhz of 2,100 Mhz and 20 Mhz of 2300 Mhz. All spectrum should not be auctioned in one go. As a start, 5 Mhz of spectrum could be auctioned initially.

The operators, who won licenses, paid a total of Rs 1,650 crore for 4.4 MHz of pan India spectrum in 2008. But now they will have to pay a minimum of Rs 16,000 crore for the same amount of spectrum.

Some telecom experts who are unhappy with the TRAI’s recommendations says if mobile service providers were to start charging for the kind of bids at high rates, mobile call rates for Local and National may go up to Rs.2 to Rs.5 per minute from current tariff as low of 30p to 50p per minute.
Categories: Telecom

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