The Telecom Regulatory Authority of India (“TRAI”), in response to the reference of the Telecom Commission to re-consider recommendations on reserve price of spectrum, has reiterated its earlier stand. TRAI has re-affirmed its original stand on pricing spectrum and simultaneous auction of the 800 MHz, 900 MHz, 1,800 MHz and 2,100 MHz bands.
Our previous post in this regard, Telecom Commission Sends Back Spectrum Recommendations to TRAI and on the recommendations issued by the TRAI on spectrum pricing can be accessed here.
Through the latest recommendations issued on November 24, 2014, the TRAI seems to have rejected the Telecom Commission’s view that most of the recommendations / suggestions on the issue should be reconsidered for the upcoming spectrum auctions in early 2015. The TRAI has reiterated its suggestion that the Department of Telecommunications (“DoT”) should simultaneously auction spectrum in the bands of 800 MHz, 900 MHz, 1,800 MHz and 2,100 MHz to avoid uncertainty in the spectrum allocations.
The Telecom Commission had earlier stated that the simultaneous auction would not be possible since the issue of swapping of 1,900 MHz spectrum for 2,100 MHz band with the Ministry of Defence would take time, delaying the auction process. In this regard, the TRAI has recommended that all 120 MHz (2 slots of 60 MHz each) in the 2,100 MHz band should be made available for commercial use. This would ensure the availability of sufficient spectrum for commercial exploitation, since the spectrum for commercial use in India is about the lowest in the world.
In view of the recent developments indicating towards the resolution of the spectrum swapping issue, TRAI is of the view that the swapping process between the DoT and Defence Ministry should be completed soon, so that the spectrum in the 2,100 MHz band could be put to auction.
In the recommendations issued earlier this week, TRAI has stated that there is no change in the reserve prices for spectrum in the 900 and 1,800 MHz band from what were recommended earlier. In October, around 10% hike in the reserve price for the 1,800 MHz band was recommended by the TRAI.
Also, the TRAI has observed that the DoT should take steps to make available additional spectrum in the 900 MHz, 1,800 MHz and 2,100 MHz spectrum bands, by taking back 1.2 MHz of 900 MHz spectrum band from Bharat Sanchar Nigam Limited (BSNL), using the idle 1,800 MHz spectrum in the defence band and vacating spectrum held in excess of 20 MHz by the military in 1,800 MHz band.
The Local Loop 