AUSPI seeks Sibal's intervention for lower base price for 800MHz spectrum

Says 800MHz base price should be 65% of 1800MHz reserve price

Industry lobby Association of Unified Telecom Service Providers of India (Auspi) has written to communications and IT minister Kapil Sibal seeking his intervention in finalising the reserve price of 800MHz spectrum, which is used by the CDMA operators to date.

In a letter to the minister on 10 March, Auspi secretary general Ashok Sud has said that the reserve price of 800MHz spectrum should be fixed at 65% of the reserve price for 1800MHz spectrum, and the price should be fixed by the Department of Telecommunications (DoT) as per the decision of the Empowered Group of Ministers (EGoM) on telecom and the Cabinet.

Auspi's submission comes few weeks after the Telecom regulatory Authority of India (Trai) has given its recommendations, on 21 February, suggesting the reserve price for 800MHz spectrum at Rs 2,685 crore for one MHz of pan-Indian airwaves, which is 52% higher than the 1,800MHz reserve price for the auction last month, and about 48% higher than the base price for the previous auction of the band conducted in March 2013.

Auspi has also said that the auction of 800MHz spectrum should commence immediately without any delay with reduced reserve price, without waiting for the state-owned telcos - Bharat sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) to surrender spectrum that they hold in 800MHz band.

According to Auspi, the adoption of 800MHz band for long-term evolution (LTE) services is marginal globally.

In its recommendation, Trai has said it has taken into account the future potential of liberalised 800MHz spectrum, which is more efficient and can be used for providing LTE services.

Auspi also noted that Trai has ignored the fact that though the spectrum is liberalised, operators (both CDMA and GSM) did not participate in the auction of 800MHz spectrum in November 2012, and only Sistema Shyam Teleservices acquired spectrum selectively in the March 2013 auction.

The Telecom Commission, which is the highest decision making authority within DoT, is currently looking into the Trai recommendations. After TC's views, the matter will go to the EGoM.