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Cell operators oppose EGoM's move on spectrum price

HT Correspondent, Hindustan Times  New Delhi, July 19, 2012
First Published: 22:22 IST(19/7/2012) | Last Updated: 22:24 IST(19/7/2012)

Cellular Operators Association of India (COAI) has written a letter to the empowered group of ministers (EGoM) chairman and union home minister P Chidambaram, opposing an EGoM move to reduce the reserve price of spectrum for auction and increase spectrum usage charge correspondingly such that government's revenues are not affected.

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"It is submitted that any SUC which is higher than existing rates will not allow the government to move to a uniform rate regime as there will be no incentive for existing spectrum holders to "migrate" to a higher rate regime. Differential SUC for different quanta/bands of spectrum will give rise to arbitrage opportunities and also result in a regime that is impossible to monitor and enforce," said Rajan S Mathews, director general of COAI, in the letter.

COAI has said that the government should reduce overall reserve price. Telecom regulatory authority of India (TRAI) has recommended a reserve price of R18,000 cr for 5 Mhz of spectrum in the 1800 MHz band.


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