23 April 2012

TRAI proposes sharply higher 2G auction pricing :Economic Times

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 TRAI on Monday proposed a sharply-higher-than expected base price for an auction of 2G radio spectrum, after a court order to cancel all telecoms permits awarded in a scandal-tainted 2008 sale and redistribute them through open bidding.

The regulator proposed a base price of 36.22 billion rupees ($695 million) for every megahertz of spectrum in the 1,800 mega hertz band, where radio airwaves will be made available after the cancellation of the licences.

This is a steep increase from about $320 million each that carriers paid for at least 4.4 mega hertz of all-India spectrum in the earlier grant process, a price which a state auditor said was "unbelievably low".

The Telecom Regulatory Authority of India (TRAI) also proposed that the auction should be open to all eligible carriers holding spectrum below a prescribed cap.

The regulator's recommendations are not binding on the government, which has the final say on the auction rules.

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