TC fixes higher base price for auctions

New Delhi: The highest decision-making body in telecom, Telecom Commission, has fixed higher base price of Rs 3,646 crore per MHz for the auction of 800 MHz spectrum,  the auctions for which is slated for February next year.

The Department of Telecom had suggested a base price of Rs 3,646 crore per MHz, which is 17 per cent higher than what the regulator Trai has recommended, for the auction of 800 MHz spectrum, used for offering CDMA services.

The price of 900 MHz and 1800 MHz as recommended by DoT committee could not be ascertained. The Telecom Commission's (TC) decision will now be placed before telecom minister Ravi Shankar Prasad for final approval and after that Cabinet might be approached for certain issues, media reports said quoting sources.

"The TC has given approval to DoT's committee recommended reserve price with some conditions. Other matters regarding the auction were also discussed," media reports said.

The TC on Monday discussed the revised recommendations submitted by sectoral regulator Trai on the pricing of 800, 900 and 1800 MHz bands. The Telecom Regulatory Authority of India has reiterated its recommendations for 900 and 1800 Mhz bands, while it has increased the base price by 15 per cent for 800 MHz band.

The next round of spectrum auction would be held in February and the government is estimated to garner at least Rs 9,355 crore from sale of radiowaves.

Most of the spectrum which is proposed to be put up for sale is being used by Airtel, Vodafone, Idea Cellular and Reliance Communications across various parts of the country.
These companies have to buy back radiowaves to continue their operations as their licences are about expire in 2015-16 for certain areas.

Trai has also released a consultation paper on pricing of 2100 MHz band, used for offering 3G services, as the government plans to auction this band along with 800, 900 and 1800 MHz in February.