Trai seeks rise in 2G spectrum price

THE AUCTION IN THE 900 MHZ BAND WILL BENEFIT AIRTEL, IDEA, VODAFONE, AND RCOMM, WHOSE LICENCES ARE SET TO EXPIRE IN 2015-16

NEW DELHI: In a move that is likely to increase your telephone bills, the Telecom Regulatory Authority of India (Trai) on Wednesday recommended a higher reserve price for spectrum in the 1,800 MHZ band mainly used in 2G services.

Spectrum refers to airwaves that telecom operators use to transmit voice and data for consumers to communicate.

The average recommended reserve price per MHZ for the 1,800 band is ₹166 crore (for 20 circles) and for the 900 MHZ band is ₹268 crore (for 18 circles).

“The reserve price for 1,800 MHZ has aberration; this could lead to higher cost for consumers,” said Rajan Mathews, director-general, Cellular Operators Association of India, the apex body that represents all telecom operators except Tata and Reliance Communication.

Operators have doubled voice and data prices in the last one year. They could raise tariffs further due to the high auction cost

The department of telecom munications refused comments

Spectrum is a scarce resource and is released by government for commercial use by operators

In view of the scarcity of the resource, Trai chairman Rahul Khullar said, “unused spectrum in the defence band should not be kept idle.”

The Centre is looking to raise more than ₹90,000 crore, which can go up to ₹120,000 crore if 10 MHZ of extended GSM band is included. The auction in February generated over ₹61,000 crore.

Trai has also suggested that all available spectrum in the 2,100 MHZ, used in 3G services, be auctioned with a clear roadmap