Mulayam writes to PM on spectrum

Samajwadi Party chief Mulayam Singh Yadav has asked Prime Minister Manmohan Singh not to accept demands of telecom companies to reduce the minimum price that has been set for the spectrum auction.

Samajwadi Party chief Mulayam Singh Yadav has asked Prime Minister Manmohan Singh not to accept demands of telecom companies to reduce the minimum price that has been set for the spectrum auction.

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Sector regulator TRAI has recommended a base or minimum price for auction at Rs. 3,622 crore per MHz. “The TRAI has made it clear that the reserve price will not impact the telecom operators adversely,” Yadav said in a letter to the Prime Minister.

The tariff increase on account of the spectrum charges would not be more than 5 paisa per minute, while the government would gain Rs. 700,000 crore in the next few years, Yadav said. “It is a huge amount to be forgotten by the government just because of misleading calculations being given by operators,” he wrote.