GeneralTRAI asks for 10 percent increase in reserve price in forthcoming spectrum auction

TRAI asks for 10 percent increase in reserve price in forthcoming spectrum auction

A recommendation from the Telecom Regulatory Authority of India or TRAI has suggested that a 10 percent hike be made in the base price of the telecom spectrum that’s about to go on sale soon. This is particularly interesting since the price rise applies to the 1800MHz band which is also known as the 2G band.

It could come into force for the auction of the said band of spectrum that is to take place in 20 circles. In stark contrast to the price that was set during the February sale, spectrum from the 1800Mhz band is likely to start being auctioned at Rs 2138 crores per megahertz.

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The reason cited by the regulatory body for this increase in the base price is that there’s a surge in data usage within the country. According to the body, the usage has increased by up to 100 percent ever since it recommended the base price around the same time last year.

As revealed by The Economic Times, these details were disclosed by Rahul Khullar, the chairman of TRAI at a recent news briefing. It has also come to light that a suggested price of Rs 3004 crores per megahertz has been applied to the premium 900MHz band.

Also Read: Vodafone asks govt to allot spectrum won fairly in February auction

This band covers mobile signal in two times more area than 1800MHz. Moreover, the price applies only to 18 out of 22 service areas, as this particular spectrum is not available in Jammu and Kashmir, Delhi, Mumbai and Kolkata.

While the recommendations have been made by TRAI, the final decision on the base price and many other things related to the auction will be taken by the government’s Department of Telecom soon.

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