Telecom Panel Favours Trai Decision on Spectrum Base Price

The Telecom Commission on Saturday decided to go ahead with the sector regulator's recommendations base price for all spectrum, including 700MHz band airwave, in the upcoming auction, according to an official source.

Going by the base price recommended by the Telecom Regulatory Authority of India (Trai), and the quantum that will be auctioned, the mop-up expected to be some Rs. 560,000 crores, or a whopping $83 billion, payable over the tenure of the contract.

In the Delhi circle, Trai has recommended Rs. 1,595 crores for 700MHz band, Rs. 848 crores for 800MHz, Rs. 673 crores for 900MHz, Rs. 399 crores for 1,800MHz, Rs. 554 crores for 2,100MHz, and Rs. 143 crores for 2,300MHz and 2,500MHz.

The inter-ministerial panel has favoured that telecom companies who will win spectrum in higher frequency bands should make 50 percent upfront payment and rest over 10 years after a two-year moratorium.

Earlier, companies had option to make 33 percent upfront payment.