The regulator on February 22 recommended a base price of Rs 2,685 crore per megahertz for CDMA airwaves which, AUSPI said, is 47 per cent higher than the minimum price earlier approved by the Empowered Group of Ministers on Telecom, and 80 per cent higher than the base price of 1800 Mhz--generally known as 2G spectrum.
In a letter dated March 10 to Telecom Minister Kapil Sibal, AUSPI said: "TRAI has not followed consistent approach while determining valuation of 800 Mhz (CDMA) spectrum and 900 Mhz spectrum (being used for GSM services) band."
Sistema Shyam Teleservices (SSTL), RCom and Tata Teleservices provide CDMA services.
RCom and TTSL also have spectrum for GSM services like that of Airtel, Vodafone, Idea and others.
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The Telecom Regulatory Authority of India (TRAI) suggested a base price for CDMA spectrum after lot of friction with the government. The regulator has recommended against auction of these airwaves in 2013 and suggested exploring the possibility of using a part of it for GSM services.
AUSPI said that while recommending lower reserve price for 1800 Mhz and 900 Mhz band, TRAI considered deteriorating condition of Indian economy, financial distress on sector and muted interest of industry in buying spectrum due to high base price in last auctions held in November 2012 and March 2013.
"...Within few months, TRAI has completely ignored these aspects and recommended a higher reserve price for 800 Mhz band compared to the previous auctions," AUSPI said.
AUSPI asked Telecom Minister Kapil Sibal that "Reserve price of 800 Mhz may be fixed at 65 per cent of the reserve price for 1800 Mhz as decided by EGoM and Cabinet" and "All available 800 Mhz spectrum should be auctioned without waiting for surrender by BSNL and MTNL.