Thursday 11 December 2014

Proposed spectrum prices get a mixed response

The telecom industry has given a mixed reaction to the Telecom Commission's decision to augment the supply of airwaves in the 900MHz band as well as increasing the reserve price of both the 900 and the 800MHz airwaves.

The GSM industry body, COAI, welcomed the decision to expand the supply of 900MHz airwaves for commercial use by private operators but added a word of concern.

"It is critical that the telecom department increases the quantum of 900MHz to be auctioned in the upcoming February auctions," Rajan Mathews, director-general of COAI, told ET. He reiterated that the government must also auction 3G airwaves (2100MHz) along with the 800, 900 and 1800MHz in the upcoming auctions.

However, in its meeting on December 8, the Telecom Commission had specifically said while the supply of 900MHz must be increased by exploring various measures as suggested by the telecom regulator, it must be delinked from the issue of the upcoming spectrum auctions.

The government has scheduled a sale of airwaves in the 800, 900 and the 1800MHz in February . It hopes to mop up at least Rs 9,355 crore from these auctions. The Telecom Commission on Monday suggested a hike of 23% in the reserve price of 900MHz band and another 17% in the price of the 800MHz band over the Trai's recommendations.

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