Thursday 7 November 2013

Telecom Commission proposes higher reserve price for spectrum auction

The Telecom Commission (TC), highest decision making agency of the Department of Telecommunications (DoT), has recommended raising reserve price for auction of pan-India mobile phone spectrum by 15% more than the price suggested by the Telecom Regulator Authority of India (TRAI) in the 1,800 megahertz (MHz) and by 25% more in case of 900 MHz.

The new base price per MHz in 1800 band for Delhi has been suggested at Rs 218.90 crore, Mumbai Rs 206.74 crore and Kolkata Rs 73.13 crore as against the regulator’s earlier recommendation of Rs 175.12 crore for Delhi, Rs 165.39 crore for Mumbai and Rs 58.50 crore for Kolkata. Similarly for 900 Mhz spectrum, the base price per MHz will be Rs 359.65 crore for Delhi, Rs 327.50 crore for Mumbai and Rs 125.27 crore for Kolkata as against TRAI’s recommendation of Rs 287.72 crore for Delhi, Rs 262 crore for Mumbai and Rs 100.22 crore for Kolkata.

Further, the telecom Commission has also approved the M&A policy, allowing mergers with a combined market share of up to 50%; this would replace the cap of 35% market share of the combined entity currently in vogue. Meanwhile, for 800 Mhz, the commission decided to conduct the auction and would now ask TRAI to give the reserve price for 800 Mhz spectrum.

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