COAI welcomes EGoM decision on spectrum reserve price

Updated on 28-Jun-2013
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Lauding the EGoM decision, the COAI has stressed the need for reconsideration in approach towards pricing of spectrum.

The Cellular Operators Association of India (COAI) has lauded the recent EGoM decision that asked the Telecom Regulatory Authority of India (TRAI) to give recommendations on the base price of spectrum in the third round of auction of airwaves.  

After the EGoM meet on Wednesday, Union minister Kapil Sibal had said: “It was decided that the issue of reserve price should be referred to Trai. We would request the regulator to give its recommendations before the end of 60 days because the government is very keen to move forward and sell the spectrum.” 

According to the minister, the decision on the base price of the spectrum will be made made after receiving the TRAI recommendation. “…as and when the TRAI makes a recommendation, the EGoM will meet and fix the reserve price and move forward so that all spectrum in all bands should be sold,” Sibal added. 

Lauding the decision, the COAI said there should be change in approach towards pricing of spectrum. The industry body pointed out that the recent auctions drew lukewarm response from companies due to steep reserve price. March 2G spectrum auction in jeopardy as telcos keep distance 

“We are hopeful that Trai will adopt a fair and market-based approach to determine a reasonable reserve price keeping in mind the inte188rests of the industry as well as the other relevant stakeholders,” it said in a statement. 

The telecom department plans to auction all the spectrum in the 800 mhz ( CDMA), 900 mhz (GSM) and 1800 mhz (2G GSM) bands in the third round of bidding that were unsold in March 2013 auctions. The government is re-auctioning the airwaves that were vacated after the Supreme Court cancelled 122 2G licences back in February 2012.  

Source: Times of India, MoneyControl 

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