Spectrum price recommendations likely by next week

Sector regulator Trai is likely to come up with its recommendations on reserve price of spectrum for the upcoming auction by the next week.
The auction process will start after Trai presents its view on the reserve price.
According to a senior Trai official, the recommendations will be out next week, and in case the Department of Telecom (DoT) needs some clarifications, it will be submitted in 3-4 days.
The government had pegged revenue from communication services for the current fiscal at Rs 42,865 crore, which include upfront realisation from spectrum sale and licence fee.
The official said Trai will give recommendations on base price for all the bands mentioned in the consultation paper and has asked DoT to speed up the harmonisation process.

The quantum of spectrum put to auction will be more than last year's.

The official further said Trai will ask DoT to keep the reserve price at such a level which will draw maximum participation.
Spectrum harmonisation is aimed at facilitating additional 3G airwaves for commercial use. The Cabinet in January last year had approved setting up of a 'Defence Band', earmarking spectrum for exclusive use by security forces, while making available the remaining radiowaves for commercial use in telecom and broadcasting.
It had also cleared swapping of 15 mHz of 3G spectrum between the Defence and the telecom ministry.

According to an official source, the government will be able to meet the Budget target even without the auction, but still a section of the government wants the auction by March to keep fiscal deficit in check.
The government had received about Rs 1.10 lakh crore from the spectrum auctions last year.