Trai exceeding its mandate, says Maran

Govt not to impose entry fee for extra spectrum for next generation services.

Reacting for the first time to the Telecom Regulatory Authority of India's recommendations on extra spectrum allocation for cellular services, the government today said Trai had gone beyond its brief while submitting some of its proposals.

"After a period of 18 months, Trai has sent back its recommendation not only for the specific terms of reference but also outside it," Communications and Information Technology Minister Dayanidhi Maran said on the sidelines of a function here.

In 2003, the communications ministry had sought Trai's recommendations on spectrum allocation.

In its recommendations, the regulator had last week proposed that a group of ministers be constituted to oversee spectrum allocation. This, the department of telecom says, is outside Trai's terms of reference. Maran said the DoT was looking into the recommendations and that the government's wireless and planning coordination wing was capable of handling the matter.

"The WPC will discuss the issue with the industry before taking a decision .... It has remained unbiased (over the years)," he said.

The minister also said the government was not in favour of imposing an entry fee for allocating extra spectrum for next generation services as the move would push up costs.

Tata Sons Chairman Ratan Tata had proposed that an entry fee of Rs 1,500 crore be levied on cellular operators interested in offering third generation services.

"I believe the revolution in Indian telecom has taken place because of low tariffs. Any decision the government will take will keep in mind the low tariffs. We should not bring the next licence raj as it will only increase the tariffs and make it disadvantageous for consumers," Maran said.

Twist in the tale

May 13 Trai recommends spectrum allocation. Both GSM and CDMA operators say proposals biased against them; Ratan Tata suggests one-time entry fee of Rs 1,500 crore.

May 15 GSM operators oppose Tata's proposal, say spectrum must be free

May 17 Maran says Trai had gone beyond its brief on few issues; government against entry fee for 3G spectrum