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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