TRAI recommends high base prices for 2G auction

New Delhi, April 23 (IANS) The Telecom Regulatory Authority of India (TRAI) Monday recommended to the government a higher-than-expected base price for the auction of 2G spectrum.

It recommended the reserve price for the 1800 MHz spectrum at Rs.3,622 crore and that for 900 MHz at Rs.7,244 crore.

The regulator said though the auction would be open to all the players, including the incumbents and the new players, those firms which are holding spectrum beyond the prescribed cap should not be allowed.

A majority of operators in their responses to the consultation paper issued earlier during the year by the regulator had suggested the reserve price for 1800 MHz to be fixed for Rs.1,658 crore - the price charged for a pan-India 2G licence in 2008.

The TRAI recommendations come in the wake of the Feb 2 Supreme Court order cancelling 122 telecom licences issued in 2008. The apex court had asked the affected firms to shut shop in four months.

At he same time, the court had asked the government to re-distribute these licences to firms through an auction in the due time.

The regulator recommended that excess spectrum of 2x2.4 MHz should be immediately taken back from MTNL.

It also said that all spectrum to be assigned through the auction process in future shall be liberalised which means spectrum in any band can be used for deploying any services in any technology.

TRAI recommended that the auction of 800 and 1800 MHz spectrum should be held through two separate auction processes and in quick succession.