Spectrum pricing: DoT panel to submit report by September 19

A DoT committee will submit its report by September 19 on regulator Trai's recommended floor price for the third round of spectrum auction.

The telecom regulator came out with recommendations on spectrum pricing and trading on September 9 and on the same day the Department of Telecom had formed an internal committee to study these suggestions.

"Telecom Secretary has asked the committee to submit report within 10 days from the date it was formed. It was earlier proposed to give a month's time to the committee," a senior DoT official said.

"The report of the committee should be comprehensive and bring out the pros and cons of important recommendations," according to the terms of reference of the committee.

Trai, in its recommendations, has suggested up to 60 per cent cut in the floor price of mobile phone spectrum for an upcoming auction after two previous sales drew lukewarm response due to high reserve price.

The committee's findings would be reviewed and placed before the inter-ministerial body Telecom Commission, sources said, adding that the department may seek additional clarification, if any needed, from the Trai after the panel's report.

The stand taken by the Telecom Commission will be placed before the Empowered Group of Ministers on spectrum for a decision on the third round of spectrum auction, the source said.

Trai, in its recommendations released on September 9, suggested a pan-India reserve price of Rs 1,496 crore per MHz in the 1800 band, down 37 per cent from the base price set in the previous auction.

In the 900 MHz band, it recommended a reserve price of Rs 288 crore per MHz for Delhi, Rs 262 crore for Mumbai and Rs 100 crore for Kolkata. These rates are about 60 per cent lower than the reserve price in the previous auction.