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3G Floor Price: Telecom Commission Rejects Telecom Regulatory Authority of India’s Proposal

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The Telecom Commission on Wednesday rejected the reserve price for 3G airwaves proposed by the Telecom Regulatory Authority of India (Trai) for next month’s spectrum auctions and sent it back to the latter for reconsideration, signalling yet another skirmish between the ministry and the watchdog.

This follows an internal telecom department panel report that was of the view that the base price of the 3G airwaves should be much higher than the Rs 2,720 crore per unit proposed by the regulator. Trai will have to revert to the telecom department in 15 days. The final decision on the price will then be taken by the Telecom Commission, the top decision-making body of the department, and it will subsequently have to be ratified by the Cabinet.

Over the last year, the telecom department has rejected all key pricing recommendations sent by the regulator. Only last month, it fixed the reserve price for 2G airwaves to be sold in the upcoming auction at much higher levels than those proposed by the regulator. In the 800 Mhz band, the telecom department fixed the reserve price at 17% above that recommended, for 900 Mhz at 23% higher and for 1800 Mhz at 2.5% higher. Original post at ET Telecom

Wahengbam Rorrkychand

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Website: http://www.blog.tonsetelecom.com

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