TRAI Releases New Pricing for 2G Spectrum

The TRAI has released its recommendation on Spectrum pricing as analyzed by an expert group. The Full text of the recommendation is here. The main takeaways are – Based on the spectrum allocated beyond 6.2Mhz and the balance period of the license in those markets, Operators will have to shell out more money.

The pan-India per MHz price of spectrum for 20 years is Rs 46bn for allocation up to 6.2Mhz and Rs 17.7bn for spectrum beyond 6.2Mhz. The price is retrospectively effective from 1 st Apr, 2010. TRAI believes that there would excess spectrum in most license areas if its recommendations on cancellation of licenses are accepted by Dept of Telecom. Under that scenario, TRAI recommends auction of the spectrum. If the auction was to take place within 12 months of such a decision, the auction price should be the relevant price instead of the current price recommended by TRAI.

Bharti Airtel may have to pay approximately Rs 3,000 Cr for additional spectrum while BSNL’s payout should be much higher. Anyway, since the JPC is likely to investigate the scam, Dr Manomhan Singh should at least wake-up now and clean the entire mess with a complete road map for the Telecom sector inviting competition from Global Telcos without budging to pressure from lobbyists and industrialists. Can the weak PM do or will he listen to the Devil’s Advocacy of his IT & Communications Minister 😉

1 Comment

  1. i want to know about fee structure of 2g specturm & landline broadband licence fee send me answer very soon please

Comments are closed.