TRAI pre-determined to reduce reserve price of spectrum: MP

MP has also noted that TRAI already has given indications through media interactions about possibility of reduction in reserve prices

The Telecom regulatory Authority of India (TRAI), which has conducted open house discussion on Monday to discuss the much-talked about issue of spectrum pricing, has been accused by a Member of Parliament (MP) of having a pre-determined mind that the reserve price of spectrum should be reduced considerably.

The MP has also noted that TRAI already has given indications through media interactions about the possibility of reduction in reserve prices, and the open house is just a formality. Government officials, MPs, NGO, law firms and several analysts have attended the open house.

Meanwhile, Press Trust of India (PTI) has reported that the recommendations for valuation and reserve price for the third round of spectrum auction would come “very shortly”, quoting TRAI chairman Rahul Khullar. Further, citing sources, it added that the recommendations are likely to come in the next 10-15 days.

In July, TRAI had invited comments on the quantity of spectrum that should be kept for auction, time that winner of airwaves should be given to roll out network and the method to be used for valuation and estimation of reserve price.

Loop Mobile has proposed that there should be no reserve price and auction should start from zero and let the market forces determine the spectrum price. Idea Cellular has stated that the auction should be started at a lower bid and final price should be determined by the market.

Vodafone and Bharti Airtel said E-GSM (extended GSM) band (800 Mhz), should be included in the upcoming auction, a move opposed by CDMA players like Tata Teleservices and Sistema Shyam Teleservices.

Incumbent GSM players such as Airtel, Vodafone and Idea Cellular have also opposed the proposal of refarming saying it will affect continuation of services and there will be incremental capex and opex. CDMA operators, however, asked TRAI to stick to the idea of refarming.

The NGO representative, who attended the open house discussion, raised the issue of cartelisation by the incumbent operators and said that the regulator should safeguard the interest of consumers.