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Telecom Commission Recommends Auction Of 10MHz Spectrum; GSMA Wants Lower Base Prices

The Telecom Commission, the Indian government's highest decision making body on telecom matters, has recommended that at least 10 Mhz of spectrum should be sold through auctions, in contrast with the TRAI's recommendations of recommended only auctioning 5 Mhz spectrum, saying that additional spectrum should be made available only if spectrum is left after reserving it for future need of refarming, according to a PTI report (via The Hindu). The commission said that the auction will take place in 8 blocks of 1.25 Mhz each, out of which new telecom companies will need to buy minimum 4 blocks (5 Mhz) and existing players can buy up to two blocks (2.5 Mhz). If a new player was not able to get 4 blocks, the government would provide additional spectrum in blocks of 1.25 Mhz each, according to the report. However, the commission has not taken a final decision on spectrum pricing and has asked the TRAI to carry out an impact analysis of the reserve price of spectrum on consumers and operators. According to Hindustan Times, R Chandrashekhar, chairman and secretary, Telecom Commission, Department of Telecom, said that the Commission hopes to work on finalising its proposition to the Empowered Group of Ministers by end of the month, after the TRAI comes up with a revised analysis. GSMA Wants Reserve Price Lowered The GSMA welcomed the Telecom Commission's decision to release more spectrum in each circle in the 1800MHz band, and said that this decision was a first step in the right direction…

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