Committee yet to take call on spectrum price

The Telecom Commission, the highest decision-making body in the telecom sector, could not take any decision on the reserve price of spectrum to be auctioned.

The Telecom Commission, the highest decision-making body in the telecom sector, could not take any decision on the reserve price of spectrum to be auctioned.

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A high-powered ministerial panel headed by finance minister Pranab Mukherjee will decide on the minimum price to be fixed for the auction of spectrum.

The Telecom Regulatory Authority of India (Trai) had recommended a reserve price of Rs. 3,600 crore per MHz of spectrum. Operators claim that this price is very high, and will impact the tariff. Trai, however, said the average impact per minute on tariff would be between three and one-and-a-half paise per minute.

In its meeting today, the Telecom Commission decided that it will again ask Trai to carry out an impact analysis of the reserve price of spectrum on consumers and operators. "The commission took note of the reserve price that Trai has recommended, and it (commission) felt that an analysis needs to be made and presented to EGoM on the impact of spectrum price on certain parameters that have been worked out," said R Chandrashekhar, chairman and secretary, Telecom Commission, Department of Telecom.

The commission felt that it needs to strike a balance between the spectrum price and three other critical factors - revenue to the government, tariff to consumer, viability of investment and continued attractiveness of the sector, said the secretary.

"We hope to work on finalising our proposition to the EGoM by end of the month. By the time EGoM meets, we hope that an analysis of Trai would be available," he said.