FinMin asks DoT to decide on TRAI's report on 2G spectrum fast

TRAI recommends caping spectrum in each circle to 8Mhz

PTI | June 15, 2010



The Finance Ministy has asked the Telecom Ministry to take a quick decision on the recommendations of telecom regulator TRAI with regard to allocation and pricing of 2G spectrum.

The Telecom Regulatory Authority of India (TRAI) had submitted its report -- Spectrum Management and Licensing Framework -- more than a month ago.

It had recommended capping the quantity of spectrum in each circle to 8 MHz other than in Delhi and Mumbai and price the extra spectrum beyond 6.2 MHz held by operators at a rate equivalent to 3G, for which price was discovered recently through auction.

Bidding for Pan-India 3G licence touched Rs 16,759 crore.

"In this context, we reiterate our earlier advice and recommend that the entire issue relating to allocation and pricing of 2G spectrum (GSM/CDMA) may be placed before the Telecom Commission at the earliest opportunity so as to evolve a coordinated view in the matter," Finance Secretary Ashok Chawla said in a letter Telecom Secretary P J Thomas.

The Department of Telecom has already constituted an internal committee to look into the recommendations of the TRAI and place it before the Telecom Commission.

The GSM operators including Bharti Airtel, Vodafone and Idea Cellular had opposed the TRAI recommendations asking the government to dump it, which according to them are "retrograde" and "absurd".

They are critical of capping the spectrum at 8 MHz in all circles except Delhi and Mumbai where the limit is 10 MHz, as they think it would restrict future growth prospects.

According to them, the TRAI recommendations including on pricing of spectrum beyond 6.2 MHz are crucial for incumbent mobile operators, as paying higher fees for existing as well as future 2G spectrum will be a big financial burden for telcos, especially Bharti and Vodafone, as their profits have already come under pressure due to intense tariff war.

TRAI had also come under attack for recommending refarming of spectrum as per which players holding spectrum in the 900 MHz band would be asked to return spectrum as and when their licence comes up for renewal.

The Finance Ministry would take a final call on the pricing of 2G spectrum for which TRAI has decided to hold separate discussions with the telecom operators and is expected to give its views by the end of next month.

 

Comments

 

Other News

‘The Civil Servant and Super Cop: Modesty, Security and the State in Punjab’

Punjabi Centuries: Tracing Histories of Punjab Edited by Anshu Malhotra Orient BlackSwan, 404 pages, Rs. 2,150

What really happened in ‘The Scam That Shook a Nation’?

The Scam That Shook a Nation By Prakash Patra and Rasheed Kidwai HarperCollins, 276 pages, Rs 399 The 1970s were a

Report of India’s G20 Task Force on Digital Public Infrastructure released

The final ‘Report of India’s G20 Task Force on Digital Public Infrastructure’ by ‘India’s G20 Task Force on Digital Public Infrastructure for Economic Transformation, Financial Inclusion and Development’ was released in New Delhi on Monday. The Task Force was led by the

How the Great War of Mahabharata was actually a world war

Mahabharata: A World War By Gaurang Damani Sanganak Prakashan, 317 pages, Rs 300 Gaurang Damani, a Mumbai-based el

Budget expectations, from job creation to tax reforms…

With the return of the NDA to power in the recently concluded Lok Sabha elections, all eyes are now on finance minister Nirmala Sitharaman’s full budget for the FY 2024-25. The interim budget presented in February was a typical vote-on-accounts, allowing the outgoing government to manage expenses in

How to transform rural landscapes, design 5G intelligent villages

Futuristic technologies such as 5G are already here. While urban users are reaping their benefits, these technologies also have a potential to transform rural areas. How to unleash that potential is the question. That was the focus of a workshop – “Transforming Rural Landscape:

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter