Trai to present exit policy with report on 2G auction

The Telecom Regulatory Authority of India (Trai) will soon give its recommendations on an exit policy— a move that will pave the way for operators to surrender licences — along with its report on fresh auction of 2G spectrum within two months.

“Whatever is connected with the licence conditions, it would be done. Yes,” Trai chairman J S Sarma told reporters, when asked if the regulator would come up with final recommendations of the exit policy for licence holders along with recommendations on fresh 2G auction.

Seeking comments from stakeholders, Trai had earlier this year issued a draft exit policy, aimed at providing a route to companies which want to leave the telecom sector. In the policy, the Trai may deal with contentious issue that whether the operators' whose licences have been cancelled are eligible to get refund of their fees paid in 2008.

Sources in the government said the issue needs to be examined in view of the Supreme Court judgement and licence terms and conditions. Minister of information technology and communications Kapil Sibal, however, had said last week at the moment the much-awaited exit policy is not relevant following the Supreme Court judgement that canncelled all 122 2G licences issued in January, 2008.

In the order, the SC has asked the government to seek fresh recommendations from Trai on allocation of licences and spectrum by way of auction. The apex court has given the government a time-frame of four months to complete the process.

Trai has already started the process of auction of 2G spectrum by issuing pre-consultation paper on this issue seeking views from all the stakeholders.