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TRAI agrees with DoT on 3G pricing

Our Bureau New Delhi, July 14 The Telecom Regulatory Authority of India on Monday said that it agreed with the Department of Telecom on issues related to pricing and auction of third generation mobile spectrum as it did not want to delay the roll out.

While TRAI had earlier suggested a maximum base price of Rs 80 crore, DoT wants it to be Rs 160 crore.

“The Authority is of the view that incidence of financial burden should be estimated in totality and isolated or piecemeal hikes with a view to mopping up additional revenue may hurt the growth of infrastructure and in the long run the telecom sector itself. However, as the reserve prices are only to fix the minimum price and the final price is determined through the auction process, therefore, the Authority in order not to further delay the process of roll out of 3G services in India agrees with the reserve price proposed by DoT.” TRAI said.

The telecom regulator also agreed to DoT’s suggestion to ask all successful bidders to match the highest bidder. TRAI however said that a waiting list may be maintained in case any of the successful bidders failed to meet the requirements at any stage of the process.

TRAI, however, said that DoT should look at creating a future growth path for CDMA players by exploring the possibility of allocating spectrum in the 1900 Mhz band and 800 Mhz band.

Related Stories:
DoT can go for global auction for 3G: TRAI
DoT scraps plan to auction 3G for CDMA players
3G auction will be open to both existing and new operators

More Stories on : Telecommunications | Regulatory Bodies & Rulings

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