Wednesday 31 December 2014

TRAI Sets 2100 MHz Spectrum Base Price at Rs 2720 Cr

India’s telecom regulator, Telecom Regulatory Authority of India (TRAI) recommended a base price of Rs 2,720 crore per megahertz (MHz) for 2100MHz spectrum in 22 telecom zones.

TRAI reiterated its earlier suggestion that spectrum in the 2100MHz band should be auctioned along with other bands – 800, 900 and 1800MHz – that are scheduled for February 2015.

TRAI has kept the price for 2100MHz band about 14% lower than the price it had recommended for 800MHz band. However, the price is lower than 900MHz, but is much higher than the base price of 1800 MHz band.

TRAI had earlier recommended the base price for 1800MHz spectrum at Rs 2,138 crore per MHz (in 20 circles), 900MHz at Rs 3,004 crore per MHz across 18 circles where existing licenses will be due for renewal, and 800MHz spectrum at Rs 3,104 crore per MHz pan India.

TRAI's recommendations have been sent to the Department of Telecom for final approval. TRAI has also said that Defence Ministry has in-principle agreed to vacate 15 Mhz spectrum in the 2100 Mhz spectrum band. Therefore, this spectrum should be put up for auction along with spectrum in the 1800 Mhz and 900 Mhz bands.

This is good news for telecom companies as they will now have more spectrum bands to bid for.

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