Trai Reiterates Spectrum Auction
Sectoral regulator Trai on Monday stood by using its tips about pricing spectrum at 10 % higher fee than the earlier auction, taking back certain airwaves from state-owned BSNL and defence giving up spectrum in 2100mhz band that can be utilized for 3G services and products.
The department of Telecom (dot) had dispatched back Trai’s tips about spectrum valuation and pricing for a evaluate, announcing that a few of them cannot be applied within the existing kind.
“After bearing in mind the comments given by means of dot, the Authority has furnished its response to the federal government. The Authority has reiterated its prior recommendations with precise reasoning,” Trai said in a observation.
The revised feedback received from Trai at the moment are more likely to be placed ahead of inter-ministerial panel Telecom commission.
The Telecom Regulatory Authority of India (Trai) had ultimate month given its tips on valuation and pricing of 1800mhz and 900mhz spectrum bands, getting used for 2G services, for the following round of auction.
The regulator said there is no alternate in the reserve prices for spectrum in 900mhz and 1800mhz bands from what have been really helpful prior.
The dot had sought clarifications regarding the methodology for arriving on the reserve worth and suggested making use of the identical method used within the February public sale for determining the spectrum base price in the subsequent round of sale of radio waves as well.
Dot had mentioned that the usage of the strategy urged by means of Trai would result in about further 3-20 % better base value of spectrum across some circles in comparison with the rates prompt with the aid of the regulator.
The next round of spectrum auction is proposed to be held in February 2015 from which government is estimated to garner at the least Rs. 9,355 crore.
Lots of the spectrum which is proposed to be advertise is being utilized by Airtel, Vodafone, concept mobile and Reliance Communications throughout various parts of the use of a.
Trai Reiterates Spectrum Auction Recommendations to DoT
These firms will want to purchase back radio waves to continue their operations in areas where their licenses are expiring in 2015-sixteen.
Dot had additionally sent back recommendations given for 800mhz (CDMA) spectrum band through Trai in February for reconsidering some factors.
The regulator stated it’s going to reply one at a time to particular dot queries on 800mhz band auction. It, however, reiterated its stand on first fully exploring the feasibility of the adoption of E-GSM for environment friendly utilization of spectrum in the 800mhz band.
Dot had said that E-GSM band requires trip of spectrum by Defence to ensure availability which is prone to take time and maintaining spectrum in the 800mhz band unsold would result in foregone revenues for government.
On 800mhz, Trai stated more than a 12 months has handed seeing that September 2013 when it had recommended that adoption of E-GSM will have to be explored in a time-bound manner and spectrum in 800mhz band has not been auctioned until date.
“Are there no foregone revenues in this context?,” Trai asked.
The regulator reiterated its recommendation to take again 1.2mhz of 900mhz spectrum from BSNL, utilizing idle 1800mhz spectrum in the defence band and vacating spectrum held in far more than 20mhz through Defence in 1800mhz band.
“The Authority reiterated that dialogue must be held on the stage of Finance Minister, Minister of Communications and IT and the Defence Minister to verify the availability of additional spectrum for commercial use,” Trai stated.
Dot is of the view that it has no jurisdiction to take again the spectrum from BSNL underneath provisions of the license settlement.
Then again, Trai said BSNL was once awarded spectrum in 900mhz band administratively and totally free and as it’s a state-owned agency, govt has each proper to take the spectrum back.
“it is inexplicable to take the stand that the government, being a sovereign and as proprietor of the PSU companies cannot resume spectrum given to the plus totally free,” Trai mentioned.
The regulator additionally stood by its thought wherein it had instructed that 60mhz of paired spectrum in 2100mhz band will have to be advertise in proposed public sale. A part of this band is held via defence forces.
Dot, however, had mentioned that “it does no longer seem possible, to get the spectrum in 2100mhz band, within the time line proposed for public sale of 800mhz (CDMA), 900mhz and 1800mhz band and vacation of spectrum by means of Defence is probably not linked with the upcoming public sale”.
“in the 2100mhz band, extra 3 blocks of 2x5mhz of spectrum can be made available by means of swapping spectrum in this band with Defence. Defence can also be assigned spectrum in 1900mhz band,” Trai said.
The regulator also mentioned that spectrum in 800mhz, 900mhz, 1800mhz and 2100mhz bands should be auctioned collectively.
“If auction of spectrum in 2100mhz were to be taken up later, there would proceed to be uncertainty,” Trai said.
The regulator additionally stressed out its point that the supply of spectrum will have to be increased. “The limited provider of spectrum poses a real possibility to the continuity of services and products being provided to millions of subscribers by using the expiry licensees,” it delivered.
Trai also requested the federal government to announce the roadmap for public sale of spectrum in 700mhz band. “This should be performed sooner than the conduct of upcoming auctions in 900/1800mhz band,” Trai said.