)
The Department of Telecommunications (DoT) is likely to take a decision on on spectrum base price for the third round of auction next week. The auction is scheduled for January 8, 2014.
“Spectrum prices will be decided next week,” Telecom Secretary M F Farooqui said today. The secretary today had a meeting with Arvind Mayaram, secretary, Department of Economic Affairs.
Meanwhile, Telecom Commission, which is the highest decidion making body in DoT, had cancelled its meeting today (October 29). The Telecom Commission was expected to discuss the spectrum pricing issue, among others, today.
Last week, the Telecom regulatory Authority of India had sent back its clarifications on its earlier recommendation for huge cut in spectrum price for the next auction. The regulator had reiterated its suggestions in all the key issues. It had recommended up to 62% reduction in reserve price for 900MHz spectrum in Mumbai, Delhi and Kolkata circles, and a 37% cut in reserve price of 1800MHz spectrum band.
Trai, however, has not recommended the auction of CDMA spectrum which saw only one buyer in March 2013 auction.
According to sources, the Finance Ministry representative in the Commission has asked for indicative base price for all CDMA and premium 2G spectrum in all circles that were not incorporated in recommendations made by Trai.
However, it could not be officially confirmed. The next date of the meeting could not be ascertained.
Trai has recommended pan India base price for 2G spectrum freed from cancellation of licences in February 2012 and for premium radiowaves in 900MHz band for Delhi, Mumbai and Kolkata service area.
The Telecom Commission at its last meeting had asked to seek prices of all the set of radiowaves as sought by the Empowered Group of Ministers on telecom, headed by Finance Minister P Chidambaram.
The telecom regulator, however, in its reply last week did not add price for CDMA in service area where they were proposed to be placed for auction.
Trai recommendations have faced criticism by CDMA players who allege that the regulator has favoured incumbent 2G players like Airtel, Vodafone, Idea and Loop.
The panel was also expected to finalise guidelines for the sector's first mergers and acquisition policy which is expected to pave way for consolidation in the sector and reduce the total number of players.
