DoT to submit report on TRAI's recommended spectrum pricing next month

The standing committee has been formed under Member Technology at the Department of Telecom (DoT) to give report on TRAI's recommendations for the spectrum auction, official sources said.

"The terms of reference of the standing committee states that it shall submit its report on recommendations of TRAI within one month," the sources said.

"The report of the committee should be comprehensive and bring out the pros and cons of important recommendations," according to the terms of reference of the committee.

TRAI in its recommendations has suggested up to 60 percent cut in the floor price of mobile phone spectrum for an upcoming auction after two previous sales drew lukewarm response due to high reserve price.

After receiving the standing committee's report, the DoT would place the matter before inter-ministerial body Telecom Commission, sources said, adding that the department may seek additional clarification, if any needed, from the TRAI after the panel's report.

The stand taken by the Telecom Commission will be placed before the Empowered Group of Ministers on spectrum for a decision on the third round of spectrum auction, the source said.

TRAI in its recommendations released on September 9 suggested a pan-India reserve price of Rs. 1,496 crore per MHz in the 1800 band, down 37 percent from the base price set in the previous auction.

In the 900 MHz band, it recommended a reserve price of Rs. 288 crore per MHz for Delhi, Rs. 262 crore for Mumbai and Rs. 100 crore for Kolkata. These rates are about 60 percent lower than the reserve price in the previous auction.