India’s telecom regulator – TRAI, under severe pressure from Corporates and Politicians has flip flopped several times on the pricing of the Spectrum. Here are 3 different View of TRAI / Government on the Telecom Spectrum
- May – 2010 – TRAI Links the price of Telecom Spectrum in excess of 6.2 MHz to the price discovered in 3G Auction
- Feb – 2011 – TRAI backtracks and comes with massive calculations and reduces the price of spectrum considerably compared to its previous recommendation.
- Feb – 2011 – Sr. Advocate turned Telecom Minister, Kapil Sibal’s Zero Loss Theory in Multi-Billion Dollar Spectrum Scam suggests that – 2G is one-third the value of 3G spectrum.
Applying the simple law of Averages for the above 3 Recommendations, 1 MHz Spectrum across India in 1800 MHz band will cost Rs 2,700 Cr [ ~USD 600 Mn]. Following chart clarifies the same,
Kindly note that this our own Theory until we get some clarity from the Paralyzed Government. In addition, it is safe to assume 900MHz spectrum will be valued at 1.5x the value of 1800Mhz band as various stake holders want to cut throats of incumbent operators, especially Airtel, Idea and Vodafone.