'EGoM should consult Trai before spectrum refarming'

EGoM should consider a comprehensive note from the DoT after it receives Trai?s guidance: Ahluwalia

The Empowered Group of Ministers (EGoM) on telecom should consult the Telecom Regulatory Authority of India (Trai) before taking any decision on spectrum refarming, according to Planning Commission Deputy Chairman Montek Singh Ahluwalia.

He has written to the Cabinet Secretary and the EGoM members that they should seek Trai’s guidance on the logistics of an orderly migration of services from the 900 MHz band to 1800 MHz or any other bands. Ahluwalia also said that the EGoM should consider a comprehensive note from the department of telecommunication (DoT) after it receives Trai’s guidance.

The Planning Commission chief said the coming auction would ascertain the price of 1800 MHz spectrum, but there was no market-discovered price for the 900 MHz to date.

About 84 per cent of the licences in the 900 MHz band would expire between 2012 and 2016, including those held by state-owned BSNL and MTNL.

The authorities need to have a clearer view of what to do with the 900 MHz spectrum after the licences are offered in the 1800 MHz spectrum at the discovered price, Ahluwalia said.

Although all stakeholders had agreed on the need for refarming, they felt there was a need for more consultation on the specific modalities.

It is also mentioned in the letter that the Telecom Commission had never considered a detailed paper on the best methodology, taking into consideration the international experiences on refarming.

In 2010, Trai had recommended refarming of the 900-MHz band as part of the three options. The three options are: Permitting operators to retain up to 5 MHz of spectrum, allowing them to retain only 2.5 MHz, and refarming all spectrum.

Of the three options, the Telecom Commission has only considered Option-I, as it has been recommended by both Trai and the DoT committee. The DoT’s views on the three options were not analysed by the EGoM before zeroing on a view, the letter said.