Base Price Suggested For Auction of CDMA Spectrum by DoT
Base Price Suggested For Auction of CDMA Spectrum by DoT
A panel from the Department of Telecom has suggested the base price of INR 3,646 crore per MHz for auction of CDMA spectrum. This is 17% higher than what was recommended by regulatory body Telecom Regulatory Authority of India/TRAI.
New Price Suggestion
The price suggested by this internal panel of DoT is nearly equal to that of the premium 900 MHz band that is considered more efficient than the GSM frequency bands available.
The Telecom Regulatory Authority of India has last month recommended the base price of INR 3,104 crore per MHZ which is 15 times greater than the price suggested by the regulatory body in February this year.
“The DoT committee has agreed to the view of TRAI that rise in demand of data services and projected subscribers’ growth cannot be ignored. The committee has applied a factor of 0.8 on TRAI suggested value that gives reserve price of Rs.3,646 crore per MHz on pan-India basis,” an official source has been quoted as saying.
The committee views are likely to be placed before the inter ministerial panel Telecom Commission scheduled to meet on December 8th, 2014.
Government’s proposal
The government had proposed for the auctioning of the CDMA spectrum in 11 service areas of Jammu & Kashmir, Maharashtra, Mumbai, Andhra Pradesh, Haryana, Madhya Pradesh, Punjab, Assam, UP East, Bihar and Himachal Pradesh.
The recommendations of the reserve price placed by Telecom Commission will be put before the Cabinet for the final decision, media sources have said. The CDMA spectrum will be held in the month of February alongside the spectrum auction in the 900-1800 MHz band.
DoT auction for the 2100 MHz spectrum is also on the anvil. This spectrum is currently being employed for 3G services. A minimum of INR 9,533 crore is expected from 800 MHz/CDMA, 900 MHz and 1800 MHz.
According to the internal estimates of DoT, government can obtain another INR 5,000 crore from auction of 3G spectrum. The finalisation of these spectrum bands’ base price will be finalised in upcoming auctions.
Conclusion
The TRAI mediated price for the auction was lower while the current price is posted as higher by the DoT panel. Spectrum allocation auction prices will have a huge impact on the future of the telecom industry and the mobile connectivity as well.
