Trai may have to recommend 800-MHz price in 15 days

Govt wants to auction 800MHz spectrum along with 1,800MHz and 900MHz bands together

The Telecom Commission is likely to give just 15 days to the Telecom Regulatory Authority of India (Trai) to give recommendations on the valuation of spectrum in the 800-MHz band.

In its meeting on Wednesday, the commission decided it would request the regulator to submit its recommendations within 15 days so that the government could auction the 800-MHz spectrum along with the 1,800-MHz and 900-MHz bands. It has been planned the auction would be conducted on January 8, 2014. The commission also said the proposed extended GSM band couldn’t be adopted now, as this would require the defence ministry to vacate spectrum.

Earlier, a Department of Telecommunications committee had rejected Trai’s recommendation of an extended GSM band, taking spectrum out of the existing 800-MHz (CDMA) band. The Telecom Commission had asked Trai for recommendations on the price of the 800-MHz spectrum.

In its reply last month, Trai had said: “It would simply not be prudent...to take a hasty decision in the matter.” It reiterated there was a vast difference between the opportunity cost of 800-MHz spectrum in the proposed extended GSM band and the price at which it was sold in the previous round of auctions. “What must be considered is the opportunity value of that spectrum band, using the most optimal technology. The government should fully explore the feasibility of adopting the extended GSM band before reaching a conclusion,” Trai said in its reply.

According to the regulator, adopting the extended GSM band will add about 25 per cent spectrum to the 900-MHz band, even if the government decided to set aside five MHz of spectrum in the 800-MHz band.

While the Telecom Commission has said Trai’s suggestion of uniform spectrum usage charges cannot be adopted now and the matter needs refinement, it would study the implications of the move, in consultation with the finance ministry. It intends to finalise the matter before the coming auctions.

“What must be considered is the opportunity value of that spectrum band using the most optimal technology. The government should fully explore the feasibility of adoption of the EGSM band before reaching a conclusion,” TRAI had said in its reply.

According to TRAI, adoption of EGSM band will add over 25 per cent spectrum to the 900-MHz band, even if the government decided to set aside five MHz spectrum in the 800-MHz band.

However, CDMA operators have always said that they would require spectrum to give proper service.

While the TC has said that the TRAI’s suggestion to have uniform spectrum usage charges (SUC) can not be adopted now and the matter needs refinement, and has decided to study the implications in consultation with the Ministry of Finance. However, it intends to finalise the matter before the upcoming auction.