PAC seeks details from DoT on allegations against TRAI by watchdog

Telecom Watchdog has written to CAG alleging that TRAI recommendation to slash reserve price was to favour some operators

The Department of Telecommunications (DoT), in a recent discussion, has noted the Public Accounts Committee has sought detailed factual note on the recommendation of the Telecom regulatory Authority of India (TRAI) to slash spectrum price for the upcoming auction.

 

The PAC has sought details after a non-Government organisation (NGO) Telecom Watchdog has written to Comptroller and Auditor General Of India (CAG) alleging that TRAI recommendation to slash reserve price for 900MHz band of spectrum by more than 62 per cent in Delhi and Mumbai circles was to favour incumbent operators Bharti Airtel, Vodafone, BPL (now Loop) and Idea Cellular.

 

Telecom Watchdog, which is also a co-petitioner in 2G spectrum case before the CAG, has written to the CAG on September 11 and has marked a copy to some Members of Parliament. The NGO has given a detailed note on how much the Government could lose if it agrees with the TRAI recommendations.

 

On September 9, TRAI had recommended about 62% lower base price for premium spectrum in 900 Mhz band which is to be put for auction in next round. It also suggested about 37% lower base price for spectrum that was freed after the Supreme Court quashed 122 licences.

 

It also added that the regulator has, for strange reasons, increased the reserve price by one per cent in (Assam and West Bengal) to 8.8% (Bihar).

 

TRAI has, on Wednesday, reiterated its recommendations for up to 62% cut in the reserve or base price for spectrum in the upcoming auction. A DoT committee, which had referred the matter back to TRAI, is studying the clarifications.

 

DoT has also noted that it may seek detailed input from its finance branch and licencing brand before finalising the note for the PAC.