Telecom panel says spectrum should be liberalized; stays clear of pricing
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The Telecom Commission on Thursday discussed the telecom regulator’s recommendations on fresh allotments of spectrum and licences but did not take any decision on pricing of spectrum.
However, the Commission, which discussed the recommendations by the Telecom Regulatory Authority of India (TRAI) and their implications, agreed that spectrum should be liberalized in future. This will allow operators to use any spectrum for any kind of services.
The Telecom Commission has also said a minimum of two slots should be auctioned to telecom operators, and said that additional spectrum over and above 10 MHz would be provided to ensure adequate slots for new players.
It also said that existing rollout obligations for telecom operators should be maintained, adding that TRAI's recommendations on rural rollout obligations will not be conducive for getting high prices through auction.
It pointed out that infrastructure in rural areas could be funded through spectrum usage charge.
India’s telecom regulator had last month announced new guidelines for the auction of telecom spectrum, drawing sharp criticism from telecom operators.
In its recommendations, TRAI had fixed the reserve prices for the auction of spectrum. The reserve price for 900 MHz was fixed at Rs 7244 crore, while that for 1800 MHz was fixed at Rs 3622 crore.
The prices is estimated to be 10 times higher than what was fixed during the first round of spectrum allotment in 2008 under then telecom minister A. Raja.
Telecom companies have claimed that this reserve price is too high, and that buying spectrum at the new prices will result in a 100 per cent hike in charges for consumers.
TRAI had also recommended that it should be entrusted with the task issuing unified licences, and that a one-time non-refundable fee of Rs 15 crore should be levied for a national-level licence.