A high-power ministerial panel, on Friday, approved the recommendation of the Telecom Commission to better regulator Telecom Regulatory Authority of India’s (TRAI) suggested reserve or base price for the auction of spectrum in the 1800 MHz and 900 MHz bands, used by GSM operators such as Bharti Airtel and Vodafone.
The Telecom Commission had earlier this month suggested fixing a minimum Rs 1,765 crore per MHz as the price for pan-India spectrum in the 1800 MHz band, which was almost 15% higher than the TRAI’s suggested rate of Rs 1,496 crore. Notably, despite the hike, the reserve price for the auction to be held around January 21-22 next year, is lower than the one fixed for failed auction of November 2012, when spectrum in the 1,800 MHz band was offered at a base price of Rs 2,800 crore per MHz.
Meanwhile, the commission suggested 25% hike in base price for 900 MHz as compared to the one which was recommended by TRAI. With this, spectrum will now cost a minimum of Rs 360 crore per MHz for Delhi, Rs 328 crore for Mumbai and Rs 125 crore for Kolkata. Thus, along with one-time fees from operator, the government is hoping to mop up Rs 30,000-Rs 40,000 crore through the January auctions.
However, the Empowered Group of Ministers (EGoM) failed to decide anything on Merger and Acquisition (M&A) norms for the telecom sector but underscored that the contentious Spectrum Usage Charge (SUC) issue will be decided by telecom ministry first and then placed before EGoM at another meeting. Further, it also directed telecom regulator to recommend a reserve price for 800 MHz spectrum, which is used by CDMA operators such as Sistema.
The Telecom Commission had earlier this month suggested fixing a minimum Rs 1,765 crore per MHz as the price for pan-India spectrum in the 1800 MHz band, which was almost 15% higher than the TRAI’s suggested rate of Rs 1,496 crore. Notably, despite the hike, the reserve price for the auction to be held around January 21-22 next year, is lower than the one fixed for failed auction of November 2012, when spectrum in the 1,800 MHz band was offered at a base price of Rs 2,800 crore per MHz.
Meanwhile, the commission suggested 25% hike in base price for 900 MHz as compared to the one which was recommended by TRAI. With this, spectrum will now cost a minimum of Rs 360 crore per MHz for Delhi, Rs 328 crore for Mumbai and Rs 125 crore for Kolkata. Thus, along with one-time fees from operator, the government is hoping to mop up Rs 30,000-Rs 40,000 crore through the January auctions.
However, the Empowered Group of Ministers (EGoM) failed to decide anything on Merger and Acquisition (M&A) norms for the telecom sector but underscored that the contentious Spectrum Usage Charge (SUC) issue will be decided by telecom ministry first and then placed before EGoM at another meeting. Further, it also directed telecom regulator to recommend a reserve price for 800 MHz spectrum, which is used by CDMA operators such as Sistema.
No comments:
Post a Comment