TRAI aligns with DoT’s proposal on 3G-spectrum auction

Telecom sector watchdog, Telecom Regulatory Authority of India (Trai) has agreed to a higher base price for 3G spectrum auction as suggested by the Department of Telecom (DoT).

“The DoT has proposed that the reserve price for 3G spectrum auction should be increased and we agree with it,” Trai Chairman Nripendra Misra said on the sidelines of an event on Friday.

3G or third generation of mobile services enhances network efficiency and allows users to access services such as video calls and faster data rates on mobile phones. TRAI had suggested a reserve base price of Rs 1, 050 crores and said that the players seeking 3G spectrum through an auction process should be able to match the second highest bidder's price.

DoT, however, had proposed to raise the base price to almost double, about Rs 2,200 crore. The regulatory authority has also agreed to DoT's proposal that all bidders for auction should match the highest bidder's price.

TRAI had said that only existing Universal Access Service License (UASL) holders should be able to participate in the 3G-spectrum auction. “It is not about national versus foreign players, it is about license holders and those without a license,” said Misra.

“DoT has sent us the proposal twice and according to the Trai Act the DoT is free to take a decision on policy now,” the Trai chairman said.