The TRAI (Telecom Regulatory Authority of India) and DoT (Department of Telecommunications) have been at loggerheads over auctioning of the 800MHz spectrum for quite some time. Hoping to fix a base price that will sound reasonable to most network operators willing to bid for it, the TRAI is also open to suggestions regarding what the said band should ideally be valued at.
The EGoM (Empowered Group of Ministers) had recommended that 5MHz spectrum in 1800MHz be sold for anything between Rs 14,000 crores to Rs 15,000 crores, in July 2012. Accordingly, the amount was pegged at Rs 2800 crores per MHz. The auction price of the 800MHz band was calculated at 1.3 times more, or Rs 3640 crores for 1MHz.
As of November 2012, there was no bidder for the 800MHz band. The cost was then reduced to Rs 1,820 crore per MHz to encourage telecom companies to come forward and snap it up. Another auction held in March 2013 saw M/s Sistema Shyam Tele Services Limited going after the 800MHz spectrum in eight LSA (Local Service Areas).
The carrier won the bid at the reserve price in Uttar Pradesh (West), Madhya Pradesh, Kerala, West Bengal, Gujarat, Kolkata, Karnataka and Delhi. In view of the fact that the CDMA subscriber base had gone down by 30% while the GSM witnessed a 65% growth in three years, the TRAI opined that using the 800MHz band for E-GSM would be better than dropping the price again.
But the DoT insisted that 10MHz of spectrum would be left unused if this move was made. And the Indian government would also stand to lose a large amount of revenue by not selling what it could of the 800MHz band. The TRAI has put forward 9 questions at the end of the consultation paper with a view to resolving the issue.
The authorization body is seeking comments on the matter from stakeholders by January 15. The last day for submitting counter-comments is January 22.