 "Telecom spectrum: Cabinet okays liberalisation where auction price not available")
“This decision was taken on the basis of the recommendations of the Telecom Regulatory Authority of India (Trai) and about Rs 1,300 crore is likely to accrue by this process,” according to an official statement.
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The development is expected to enable Reliance Communications (RCom) to liberalise their 800 megahertz (MHz) spectrum in four circles — (Kerala, Karnataka, Rajasthan and Tamil Nadu) — where the market-determined price was not available. RCom plans to share spectrum in these circles with Mukesh Ambani’s Reliance Jio and launch fourth generation (4G) services.
According to sources, RCom will have to pay Rs 1,280 crore for liberalisation. It has already paid Rs 5,384 crore to the department of telecommunications (DoT) for liberalisation of 800 MHz in 16 circles (the country has 22).
“Wherever administratively allocated spectrum is available, whose liberalisation is sought and whose market-determined price is not available, Trai’s recommendation on auction for price shall be taken as the provisional standard. After actual auction, the balance will be taken,” said Communications Minister Ravi Shankar Prasad.
Trai had suggested the government provisionally liberalise spectrum on the price suggested by it for auction and take an undertaking from companies on the rest of the price when the actual auction takes place.
The government said the most recent recommended reserve price would be taken as the provisional price for liberalisation of administratively allocated spectrum, where an auction-set price is not available.
After completion of the ensuing auction and with the availability of an auction-determined price, the provisional price already charged will be adjusted with the former one, with effect from the date of liberalisation, proportionally. This should enable better utilisation of spectrum, with new technologies, sharing and trading.
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