Telecom Commission to take a call on Trai's proposals today

Trai has recommended, among other proposals, a reserve price of Rs.3,622 crore for 1 MHz pan-India spectrum, which is around 10 times higher than the price at which 2G licences were allocated in 2008

hidden May 24, 2012 11:53:19 IST
Telecom Commission to take a call on Trai's proposals today

The Telecom Commission, the highest policy-making forum in the communications ministry, will meet today to take a call on the sector regulator's controversial recommendations on spectrum auction which have made the industry come up in arms.

The Telecom Regulatory Authority of India (TRAI) has recommended, among other proposals, a reserve price of Rs.3,622 crore for 1 MHz pan-India spectrum, which is around 10 times higher than the price at which 2G licences were allocated in 2008 under then Telecom Minister A Raja.

Telecom Commission to take a call on Trais proposals today

According to a study conducted by PwC, telecom tariffs are expected to rise by 90 paise a minute in metros aif the sector regulator's recommendations on spectrum pricing are accepted.AFP

The proposals have been highly criticised by the operators and independent analysts alike. Calling TRAI's recommendations a 'death knell' for the industry, the operators have also warned of a 100 percent hike in tariffs if the proposals are accepted.

According to a study conducted by consultancy PricewaterhouseCoopers (PwC), telecom tariffs are expected to rise by 90 paise a minute in metros and 20-34 paise on an average across the country if the sector regulator's recommendations on spectrum pricing are accepted.

Following constant opposition from the industry, the Department of Telecom (DoT) had asked the regulator to review the recommendations. However, TRAI largely retained its proposals on high reserve price even in the revised paper.

The recommendation comes in the wake of the Feb 2 Supreme Court order cancelling 122 telecom licences issued in 2008.

IANS

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