Friday 8 November 2013

Telecom Commission asks TRAI to fix reserve price for 800-MHz in 15 days

The Telecom Commission (TC), major decision-making agency of the Department of Telecommunications (DoT), has asked the Telecom Regulatory Authority of India (TRAI) to recommend the reserve price for the 800 MHz band within 15 days so that the government could auction the 800-MHz spectrum along with the 1,800-MHz and 900-MHz bands. The Telecom Commission is of the view that keeping 800 MHz band spectrum unsold would result in lower revenues for government and it may be appropriate to put the spectrum to auction to allow telecom players to determine the appropriate technology solution using the liberalised spectrum. The government has planned to conduct the auction on January 8, 2014.

Earlier, the Department of Telecommunications (DoT) had rejected TRAI's recommendation of an extended GSM band, taking spectrum out of the existing 800-MHz (CDMA) band as CDMA operators, including Reliance Communications, Sistema Shyam, and Tata Teleservices currently use it, and the proposed extended GSM band would block their further roll out.

Meanwhile, Telecom Commission (TC) has also recommended raising reserve price for auction of pan-India mobile phone spectrum by 15% more than the price suggested by the TRAI in the 1,800 megahertz (MHz) and by 25% more in case of 900 MHz. Further, in order to enhance telecom geographical coverage, the Commission has also decided to modify the roll out obligation of telecom operators in a bid to ensure that all villages are connected. In India, around 50,000 more villages are yet to be covered by mobile operators.

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