The Telecom Regulatory Authority of India (TRAI) has recommended (pdf) a reserve price of Rs 11,485 crore per MHz for pan India airwaves for the next round of auctions. This includes the base spectrum pricing for 7 bands, including the 700 MHz spectrum which is being offered for the first time and supposedly offers high quality mobile broadband and 4G. The TRAI’s recommendation will go to the Telecom Commission and then the Cabinet for final approval, following which the auctions will take place. The report states that this is the highest reserve price fixed for a band since the auctions began in 2011, and could fetch the government Rs 5.36 lakh crore if frequency is sold at Rs 11,485 crore per MHz. The 700 MHz band spectrum could independently cost Rs 4 lakh crore at the same price. (Devices compatible with 700 MHz A block spectrum) The TRAI is of the view that the telecom industry needs more spectrum to address call drops, as well the spectrum crunch. Also read: - Telcos could sink with Trai planning Rs 4.6 trillion auction - Telcos say 700 MHz spectrum price exorbitant However, telecom operators in India had a gross revenue of Rs 2.54 lakh crore in financial year 2014-15, and are prompting questions over the current reserve price recommended by the TRAI. Last year’s spectrum auction got the government bids worth Rs 1.1 lakh crore, and telcos had requested the TRAI to defer the sale of the 700 MHz spectrum, stating that the ecosystem…
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