Liberalisation of 800-MHz spectrum approved

The Inter-ministerial Telecom Commission on Friday approved liberalisation of 800-MHz spectrum in circles where a market-determined price is not available.

According to the Telecom Commission, an operator has to pay an amount equal to the reserve price proposed by sectoral regulator Telecom Regulatory Authority of India (Trai) for the coming auction, with a condition that after the auction concludes, the telco has to pay final winning price, sources said.

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There are four circles —Kerala, Karnataka, Rajasthan and Tamil Nadu — where a market determined price is not available in the 800-MHz band. After Cabinet approves the decision, it will allow Reliance Communications  (RCom) to liberalise its spectrum in the four circles by paying about Rs 1,300 crore. Trai has given its views regarding the liberalisation fee for those circles where a market determined price is not available. RCom had applied for liberalising its 800 MHz spectrum in 20 circles a few months back.

The company had already paid Rs 5,383.84 crore as spectrum liberalisation fee for 16 telecom circles.

The government has already issued guidelines to liberalise the administratively alloted 2G spectrum, allowing operators to offer latest mobile services, including 4G, using the same radiowaves.