TRAI Sets 2G Spectrum Reserve Price Higher Than 3G

India’s telecom regulator, Telecom Regulatory Authority of India (TRAI) finally today proposed a base price for auction of 2G spectrum that is 7th time higher than the 3G auction price of 2010. The value of 2G spectrum has been pegged at Rs 7 lakh crore.

According to TRAI’s recommendation, For the the 900 mega hertz band (2G) a base price at Rs 7000 crore, which is twice the base price set for a 3G spectrum. For 700 megahertz band, it has been set at Rs 14,000 crore which is 4 times the 3G reserve price.

TRAI recommends auction of 30 Mhz of 700 Mhz band, 10 Mhz of 800 Mhz band, 15 Mhz of 900 Mhz band, 15 Mhz of 1800 Mhz, 5 Mhz of 2,100 Mhz and 20 Mhz of 2300 Mhz. All spectrum should not be auctioned in one go. As a start, 5 Mhz of spectrum could be auctioned initially. Auctions could be phased out across three years.

TRAI recommends that the refarming of spectrum in the 800 MHz and 900 MHz bands should be carried out progressively at an early date but not later than the due date of renewal of the licences. The spectrum available with the service providers in the 900 MHz band should be replaced by spectrum in the 1800 MHz band, which should be charged at the price prevalent at the time of refarming.

The Authority recommends that all spectrum to be assigned through the auction process in future shall be liberalised. In other words, spectrum in any band can be used for deploying any services in any technology.

TRAI recommended that, Auction of spectrum in the 900 MHz band (2G) , auction should be conducted in the first half of 2013-14 preferably in the first quarter so that there is adequate time for deployment as and when 900 MHz spectrum is available by November, 2014.

Balance Spectrum in 1800 MHz band should be done in the first half of 2013-14, Auction of Spectrum in 2100 MHz band to be carried out in the second half of 2013-14. While auction of available spectrum in 700 MHz band in the first half of financial year 2014-15 and Auction of additional spectrum in 2300 MHz band in the second half of financial year 2014-15.

TRAI recommends the following Reserve Price for spectrum in different bands –  Circle wise detail :

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  • Kavi April 28, 2012 3:00 pm

    Indian Politicians are enjoying hard earned money of poor people
    Just do one thing in the favor of nation reduce the salaries of ministers specially ministers like telecom minister and food minister
    and Why TRAI employees are not able to live their life in 10’000 Rupees
    While common man have to live at the cost of Rs.23 per Day

  • Sathish April 25, 2012 1:28 pm

    Why TRAI recommends such a huge rate(market rate / benchmark rate) for 2G spectrum.

    Am appreciate TRAI’s move (Spectrum Price).

    Earlier these 2G companies what did, they bought PAN India Licence at 1653 Cr, later it sold the same at 7 to 10 times high to foreign companies like telenor, etisalat DB, MTS, etc.,

    Finally our govt got loss INR 1.76 Lakh Crores.

    Who is worry about it!

    Already Vodafone cheats(deal between hutch and Vodafone in outside India) Income Tax authority of India by using loopholes.

    The real service providers can buy the spectrum at this rate and can do the telecom business in India.

    if there is no profit in telecom sector means why all the black money peoples more concentrate only on Indian telecom!

    Indian Telecom is Money spinning business.

    Do You know what we will do with 1.76 Lakh Crore money for develop of India?

    Telecom companies make us a fool.

    Thanks to supreme court 122 License cancellation decision and TRAI’s Move.

  • Roy April 25, 2012 11:26 am

    Roy :
    @Sunny
    You’ve summed up everything in short.
    + 10000000
    We need progress. Now the incumbents as well as the new operators would be at a level playing field. No more exploitation by Airtel or any other cartel. This is what TRAI should have done years ago. Finally, Indian telecom is shining.
    P.S. For those of you petrified with rising outgoing and GPRSGPRSGPRSGPRS/3G/4G cost, please consider landline phones and ADSL/Cable Interner.

    @Sudhakar will understand this as he is a loyal advocate of landlines.

  • Roy April 24, 2012 10:58 pm

    @Sunny

    You’ve summed up everything in short.
    + 10000000
    We need progress. Now the incumbents as well as the new operators would be at a level playing field. No more exploitation by Airtel or any other cartel. This is what TRAI should have done years ago. Finally, Indian telecom is shining.

    P.S. For those of you petrified with rising outgoing and GPRSGPRSGPRSGPRS/3G/4G cost, please consider landline phones and ADSL/Cable Interner.

  • Sunny April 24, 2012 6:59 pm

    Sometimes reading the comments here really make me think that how foolish people can be. Why are you guys over-reacting? You are not an expert at all and most of you are unaware of numerous facts and real issues. Knowing just few facts and making non-sense comments is not right at all.

    Those who are at the job knows well how to get it done. TRAI hasn’t done anything wrong by setting up the prices at this level. This is what market price of spectrum are.

    Do you really know how much money telecom companies made in past and are making and resulting in loss to the Government and nation? Airtel acquired Zain in Africa, Warid in Bangladesh, started their services in Sri Lanka, all this with the profits they generated in India and when it comes to buying license/spectrum renewal for Indian operations they are crying….

    When SC canceled licenses of new operators, all the incumbent operators were happy but their party has been spoiled now. Early joy is end now.

    It’s good recommendations by TRAI. A job well done in price discovery of spectrum.

  • VB April 24, 2012 5:47 pm

    VB :
    In US 2008 spectrum auction , the base price of 700MHz(costly block ,22 MHz bandwidth (746–757 and 776–787 MHz)) spectrum price was $460,00,00,000 which is around Rs1045.45Crore per spectrum* (CONSIDERING 1$=Rs50)
    CONGRESS gtfo from india.

    *Its Rs1045.45Crore per MHz .

  • VB April 24, 2012 5:45 pm

    In US 2008 spectrum auction , the base price of 700MHz(costly block ,22 MHz bandwidth (746–757 and 776–787 MHz)) spectrum price was $460,00,00,000 which is around Rs1045.45Crore per spectrum (CONSIDERING 1$=Rs50)
    CONGRESS gtfo from india.

  • bhopal April 24, 2012 5:20 pm

    no one is thinking abt telecom employees.
    Ultimately employees will suffer..

  • sushant gupta April 24, 2012 4:11 pm

    Regulators in india are holiday home for beurocrats and technocrats who have either retired or about to retire,government controls there appointment……what can u expect from them????u get a hard hitting judgement from supreme court spectrum price increased 10 times which they did not do for last 10 years……..

  • Abhijit April 24, 2012 4:07 pm

    This is one of the major way of the UPA Govt. to earn so much revenue which will be utilized in upcoming LOK SABHA election in 2014. :(

  • Jagan T April 24, 2012 1:17 pm

    Saurabh :
    Call Rates in 2013:-
    1. Airtel/Idea/Vodafone- Rs.2.40/min or 4p/s
    2. BSNL- Rs.2.10/min or 3.5p/s
    3. Tata Docomo/Aircel- Rs.1.80/min or 3p/s
    4. Reliance- Rs.2.00/min or 3.3p/s

    Data Rates in 2013 for 2G:
    1. Airtel/Idea/Vodafone- Rs.300/GB, Rs.500/3GB
    2. BSNL- Rs.400/3GB
    3. Tata Docomo/Aircel- Rs.300/2GB
    4. Reliance- Rs.300/2GB
    Data Rates in 2013 for 3G:
    1. Airtel/Idea/Vodafone- Rs.100/GB, Rs.200/3GB
    2. BSNL- Rs.150/3GB
    3. Tata Docomo/Aircel- Rs.250/4GB
    4. Reliance- Rs.300/4GB

    @Saurabh
    Well said. But very sad, its going to be happen bro.

  • Jagan T April 24, 2012 1:14 pm

    This is idiotic move. Govt plans to wipe tons of load of money from the telcos to clear it debts. Telcos going to charge Min 3 Rs to Max 5 Rs for call/min. Affordable mobile call tariff is not possible by this govt’s greed. Stupid and Greedy govt to concentrate only to loot. God can’t save this country. :(

  • Mama April 24, 2012 1:06 pm

    kamlesh mehta :
    Big blow for Uninor and MTS, because the price set is around 10 times more than what companies such as Unitech Wireless aka UNINOR and Shyam Telecom aka MTS India paid for at least 4.4 MHz of all-India spectrum in 2008. So most prbebaly Uninor will quit India !

    I also think the same…. :-(

  • Mama April 24, 2012 1:02 pm

    @Saurabh Jain Airtel, Idea and Vodafone will pay 30000 / 42000 / 25000 Crore respectively in 2014 for continuation and more for access spectrum. They will kneel down… Don’t think that it is so easy….

  • Mama April 24, 2012 1:02 pm

    @Saurabh Jain Airtel, Idea and Vodafone will pay 30000 / 42000 / 25000 respectively in 2014 for continuation and more for access spectrum. They will kneel down… Don’t think that it is so easy….

  • dhashd April 24, 2012 12:54 pm

    nothing is going to happen kapil ji..get lost with ur ntp2012@Arka

  • Merc April 24, 2012 12:53 pm

    @DB

    900 mhz works for 3g too. saw that networks in Australia use it. Infact apple was forced to add 3g 900 band, for australia customers. all good 3g phones like iphone, samsung galaxy & htc phones support 3g 900 band .

    Unfortunately in india, 900 band is used only for 2g

  • dhashd April 24, 2012 12:48 pm

    we should forward this to trai let them know @Saurabh

  • kashif April 24, 2012 12:29 pm

    aap logo ko kya lagta he TRAI me curruption zero he? please reply

  • kashif April 24, 2012 12:29 pm

    aap logo ko kya lagta he TRAI me curruption zero he? please rely

  • mausam April 24, 2012 12:05 pm

    Arre bhai if raja has done d corruption take money from..y to bother the common people. By intitiating such crap steps..its u government people who are coRrupt and who earn money by sucking our blood..so y are we or the new operators be responsible for wat mr raja has done..

  • hardeep April 24, 2012 11:47 am

    why didn’t TRAI come up with same recommendations and pricing when earlier the same licences were sold of for much less? what a country we are living in….. there’s absolutely NO LAW!

  • DB April 24, 2012 11:47 am

    @Merc
    @ MERC – 900mhz cannot support 3G

    >> i wish Uninor buys 900mhz band spectrum and starts 3g on that 900mhz spectrum. this will give great 3g coverage

  • Sandeep April 24, 2012 11:31 am

    2G is the base & crux of GSM. If you have a 2G Auction thats so costly as of now it’ll affect the entire tariff unlike a costly 3G Auction.

  • DB April 24, 2012 11:11 am

    @Ajay
    @ AJAY by your logic then why did 1p/sec become 1.2p/sec (Airtel, Vodafone, Idea) across circles where they are market leaders + operate on 900Mhz ?

    >> As far as call rates hike concern i dont think it would be happened in crowded mobile operator services. Subscribers have lots of choice to use so except AT & VF every operator have chances to pull these bloody suckers subscribers only because of this reason no one operator will dare to hike the call rate charges in near future or even after this auction.

  • kaka April 24, 2012 10:31 am

    Saurabh :
    Call Rates in 2013:-
    1. Airtel/Idea/Vodafone- Rs.2.40/min or 4p/s
    2. BSNL- Rs.2.10/min or 3.5p/s
    3. Tata Docomo/Aircel- Rs.1.80/min or 3p/s
    4. Reliance- Rs.2.00/min or 3.3p/s

    Data Rates in 2013 for 2G:
    1. Airtel/Idea/Vodafone- Rs. 300/GB, Rs. 500/3GB
    2. BSNL- Rs. 400/3GB
    3. Tata Docomo/Aircel- Rs. 300/2GB
    4. Reliance- Rs. 300/2GB
    Data Rates in 2013 for 3G:
    1. Airtel/Idea/Vodafone- Rs. 100/GB, Rs. 200/3GB
    2. BSNL- Rs. 150/3GB
    3. Tata Docomo/Aircel- Rs. 250/4GB
    4. Reliance- Rs. 300/4GB

    very well said bro..

  • Dipankar April 24, 2012 9:42 am

    TATA DOCOMO GSM (IND 047) kab milegqa ??????

  • Merc April 24, 2012 9:23 am

    i wish Uninor buys 900mhz band spectrum and starts 3g on that 900mhz spectrum. this will give great 3g coverage

  • Saurabh April 24, 2012 8:53 am

    Call Rates in 2013:-
    1. Airtel/Idea/Vodafone- Rs.2.40/min or 4p/s
    2. BSNL- Rs.2.10/min or 3.5p/s
    3. Tata Docomo/Aircel- Rs.1.80/min or 3p/s
    4. Reliance- Rs.2.00/min or 3.3p/s

    Data Rates in 2013 for 2G:
    1. Airtel/Idea/Vodafone- Rs.300/GB, Rs.500/3GB
    2. BSNL- Rs.400/3GB
    3. Tata Docomo/Aircel- Rs.300/2GB
    4. Reliance- Rs.300/2GB

    Data Rates in 2013 for 3G:
    1. Airtel/Idea/Vodafone- Rs.100/GB, Rs.200/3GB
    2. BSNL- Rs.150/3GB
    3. Tata Docomo/Aircel- Rs.250/4GB
    4. Reliance- Rs.300/4GB

  • kavin April 24, 2012 6:54 am

    boss if 2g is too low then there will be no takers for 3g/ 4g.. its so simple.. if u make bike costlier than car.. which will u opt for?
    e.g of same logic
    1. draw a large line next to another line to make existing line smaller*technique to make line smaller WITHOUT ERASING( birbal story remember)
    2.in abroad.. tell people advantage of car no buyers but when bike is made costly then everyone shift for car…
    so,
    our govt is pushing for change…
    this government may soon recomend to hike price of rice more than wheat… so prepare,,,

  • Ajay April 24, 2012 2:40 am

    As far as call rates hike concern i dont think it would be happened in crowded mobile operator services. Subscribers have lots of choice to use so except AT & VF every operator have chances to pull these bloody suckers subscribers only because of this reason no one operator will dare to hike the call rate charges in near future or even after this auction. Its my personal view on the TRAI’s new auction policy. This time they really work hard to get the value for money. Spectrum is the natural resources & last time A Raja sold it with big scam but this time Central Govt TRAI taken care of it to sale it with nominal start up rate. Lets see whats next, How many operators oppose? Ignore the COAI Union team member, they always express against the Govt. Need to hear from aircel, Uninor, videocon & Loop’s opinion on it.

  • Ajay April 24, 2012 2:29 am

    kavin :
    India Adds 3 GSM Subscribers in March 2013 – Airtel Leads
    will become headings of telecom talk..

    also TT will post his complete name with Airtel Circle head photograph offering a new sim connection & also group photo with Mittal & Ksibal …..haaa haaa haa. nice comment Kevin

  • Vineet Koul April 24, 2012 1:52 am

    Its Aircel In HP @ Kaka

  • ZaheerKhan April 24, 2012 1:37 am

    What About BSNL ?

  • harsha April 24, 2012 1:35 am

    y dont any one see the profits in it

    the call rates in India are amongst the cheapest in the world.
    as we already know about the competition the call rates arent gona hike much
    y the hell are people complaining so much man

    DUDE 10 years ago cost of tomato was 2rs/kg
    now 20rs/kg
    coming to telecom call cost was initialy 16rs/min
    and they even used to charge for incoming
    and now base tarrif is at MAX 1rp/min
    we have hell lot of rate cutters besides

    y are people not thinking about the vital needs like food but bothering about the materialistic call rates

    yet my friends the TRAI has just recomended these
    TRAI has always done good for the people
    even in 2G scam TRAI has aleady warned the telecom minister
    the government may be corrupt but not TRAI
    dude they are the expertise of the nation
    we are jyst AAM ADMI knowledge wise
    they must have taken 100s of factors into consideration

    and if u still wasnt call rates SWITCH over to some other network
    like aircel wich i think will always have affordable call rates
    IF u wana stick to airtel or voda u will have to suffer
    coz airtel strictly follows PRIMERE PRISING strategy

  • kaka April 24, 2012 1:09 am

    Vineet Koul :
    We All TT Members Should Email The Nodal Officers Of Respective Area And Should Ask Them To Make 3G Tariff Affordable,I Am Definitely Sure That They Will Do So.,
    Now A Days I Am Getting Full 3G Sinals In Home As I Earlier Complained For It.
    Kam Se Kam Unke Kano Mein Baat To Ponchay.

    which 3g signal is full? please mention operator and ur area and what about others?

  • pedopoka April 24, 2012 12:10 am

    kavin :
    India Adds 3 GSM Subscribers in March 2013 – Airtel Leads
    will become headings of telecom talk..

    This is the best comment on tt til date. :D

  • pedopoka April 24, 2012 12:08 am

    Rohan Singh :

    max :

    Suma :
    Hello, Sanjay(admin)
    I hav a very short idea of this kind Mhz signal. But I curious to know why the huge price differnces between 700Mhz to 2300Mhz auction. Which one is beter 700 or 2300.

    700 mhz less infrastructure with good clarity, 2300Mhz totally opposit

    With 700mhz u need to install less infra but speed will be less in comparision to 2300mhz. And 2300mhz will have greater speed but more infrastructure

    2300 MHz band has more capacity, thus it’s suitable forurban areas. Bt it wl hav less coverage, hence more infra.

  • Vineet Koul April 23, 2012 11:54 pm

    We All TT Members Should Email The Nodal Officers Of Respective Area And Should Ask Them To Make 3G Tariff Affordable,I Am Definitely Sure That They Will Do So.,
    Now A Days I Am Getting Full 3G Sinals In Home As I Earlier Complained For It.
    Kam Se Kam Unke Kano Mein Baat To Ponchay.

  • Zeeshan April 23, 2012 11:47 pm

    They have to surrender their 900 Mhz spectrum in 2014 if they don’t win in auction which will be taken place in 2013.@Saurabh Jain

  • Siba Prasad Samantaray April 23, 2012 11:41 pm

    When Odisha Circle gives the highest revenue in comparision to all other circles in eastern part, how come the spectrum price for WB is higher than that in Odisha circle. The reasoning behind this is not clear

  • kavin April 23, 2012 11:33 pm

    India Adds 3 GSM Subscribers in March 2013 – Airtel Leads
    will become headings of telecom talk..

  • Arka April 23, 2012 11:13 pm

    Alas! very very bad decision by TRAI. so,low call charge will be dream.

    But,I can not understand that, what about NTP 2012? where is KAPIL SIBBAL’S “ONE NATION,ONE CIRCLE” and “ROAM FREE INDIA”?

    If one player can not buy all 22 circles(that may be happen),then how it gives services to all circles,where INDIA is “one nation,one circle” by NTP 2012 ???

  • Rohan Singh April 23, 2012 10:57 pm

    max :

    Suma :
    Hello, Sanjay(admin)
    I hav a very short idea of this kind Mhz signal. But I curious to know why the huge price differnces between 700Mhz to 2300Mhz auction. Which one is beter 700 or 2300.

    700 mhz less infrastructure with good clarity, 2300Mhz totally opposit

    With 700mhz u need to install less infra but speed will be less in comparision to 2300mhz. And 2300mhz will have greater speed but more infrastructure

  • max April 23, 2012 10:41 pm

    Suma :
    Hello, Sanjay(admin)
    I hav a very short idea of this kind Mhz signal. But I curious to know why the huge price differnces between 700Mhz to 2300Mhz auction. Which one is beter 700 or 2300.

    700 mhz less infrastructure with good clarity, 2300Mhz totally opposit

  • sahel April 23, 2012 10:41 pm

    Soon indian goverment will play a major role in corruption. Bluddy money sucker. Its not public goverment any more its private goverment…..

  • krishnendu April 23, 2012 10:10 pm

    sandeep :
    This may be TRAI’s best stroke as the govt is going to make loads of money from the auctions but whos going to make up for this???definitly us subscribers.And definitly Abhay i think u will be proud of TRAI when u will be paying 3rs/min for evry call u make or maybe more….at last 3g will look cheaper compared to 2g…..

    it seems soon mobile calls will cost as much as in usa!but with the shitty service of gr8 India!This govt is going mad to hide their own corruption..

  • kamlesh mehta April 23, 2012 10:06 pm

    Big blow for Uninor and MTS, because the price set is around 10 times more than what companies such as Unitech Wireless aka UNINOR and Shyam Telecom aka MTS India paid for at least 4.4 MHz of all-India spectrum in 2008. So most prbebaly Uninor will quit India !

  • myself April 23, 2012 10:00 pm

    2G is overrated, get 3G, get Vonage/ Skype premium enjoy HD quality calls at same price as 2G.

  • Sreekanth. Jayadevan April 23, 2012 9:55 pm

    Is everyone want to take part in auction or those who have lost licenses?

  • Devendar April 23, 2012 9:52 pm

    It will surely effect whole telecom. But i want to know that how much time does it takes to raise charges.

  • Suma April 23, 2012 9:51 pm

    Hello, Sanjay(admin)
    I hav a very short idea of this kind Mhz signal. But I curious to know why the huge price differnces between 700Mhz to 2300Mhz auction. Which one is beter 700 or 2300.

  • F1 April 23, 2012 9:31 pm

    Trai is following the instructions of Airtel, Vodafone & Idea. Once these new operators shutdown the services, then these certified & established thieves squeeze the indians. Wow, its the great indian tamasha…

  • Amit Deb Biswas April 23, 2012 9:26 pm

    God save uninor!!!

  • sachin April 23, 2012 9:11 pm

    correct yaar.now its time to go back to old land phones@aditya iyer

  • sachin April 23, 2012 9:10 pm

    tarrif rise is for sure.so thanks to indian goverment and supreme court.@Chintoy

  • Abhay April 23, 2012 8:57 pm

    @sandeep
    No issues. Still no one going to lose anything. Call rates will definitely vary but not to that extent which people might be fearing over here on telecomtalk.info platform. No need to panic friends. Even after paying heavy license fee for 3G operators are still offering same voice call rates on 3G and average of 70-80 paise per minute of VIDEO call. Except data rates nothing changed much from switching over from 2G to 3G for anyone as hardly anyone uses 3G for Video Calls.Rather voice call gets extreme clarity on 3G network with same call rates.However, since 3G enabled handsets are still costing over 5000 so penetration is still low otherwise 3G charges would have also come down significantly.I request all the readers not to panic in any way by the move of TRAI. In the long run, these licenses are being awarded for 14 yrs(very long period to recover license fee and profits also)so no need to panic at all.

  • VB April 23, 2012 8:49 pm

    WTH govt is upto ? Is this our own govt or som britishers? omg. i really cant believe this .

  • Kaushik April 23, 2012 8:29 pm

    The biggest mistake India made was the 3G spectrum auction followed by BWA (4G) spectrum auction for the 2300 MHz band. Many countries like China, South Africa, etc. have bypassed 3G. They planning direct entry to 4G from 3G.

    Now, LTE 2300 Mhz will cater its services to only selected areas of a Service Area. In order to provide better service, the number of BTS to be installed will be more, since frequency is too high, thus directly resulting considerable increase in expenses of the service provider. Moreover, there is no smartphone that supports LTE 2300. Hence, bearing high costs will be inevitable.

    The Govt. could have auctioned BWA spectrum for the 700 MHz frequency band. There are phones available. Reception will be better since frequency is low. Thus, installation costs would have been much less. Therefore, cost to be born by the consumer would have far less as well.

    God knows what our country’s bureaucrats were thinking while planning the auction process in 2009!!

  • Kaushik Roy April 23, 2012 8:27 pm

    Now telenor will surely quit India after this base price

  • Sudhakar April 23, 2012 8:22 pm

    The tariffs for using a original foreign SIM (not matrix etc) in India has been increased.

    For example :

    For a user having WATANIYA SIM from Kuwait :

    3 years back, the rate for calling back to Kuwait using Wataniya was KD 0.700. It has been increased to KD 1.000 1 year back. Also sending SMS (all mobile to mobile outgoing SMS) was KD 0.125 per SMS 3 years back. Now it is KD 0.175 !!!.

    Note :
    KD is Kuwait Dinar. 1 Kuwait Dinar (KD 1.000) is Rs.186 approx.

  • Amit April 23, 2012 8:19 pm

    So we are going to get 10 times (as per Base Price and bidding would fetch much more) more than 2008 price and Kapil Sibal was saying that there was ZERO LOSS. Hilarious

  • aditya iyer April 23, 2012 8:14 pm

    this is absolutely crazy!! supreme court is crazy! GOI is crazy everyone’s got mad!!
    this will lead to cartelisation of telecom companies and and anyways the monies gotten will be blown away in invisible schemes (read scams)……there’s no sense to the policty making in India….here in india the supreme court only gives judgements and no justice. such arrogant and short sighted verdicts will kill indian industry for good and crony capitalism will be all pervading.

  • Chintoy April 23, 2012 8:10 pm

    @Abhay
    dude but it will lead to increase in tariff og basic phone service like 2g.Doesn’t it bother you. this is all the result of reforms paralysis of govt and to compensate for their loser performance they are costing us common people more?Also there is also no clarity on license cancellation and new entrants.

  • Pritam April 23, 2012 8:09 pm

    what will be the call rates and what about the data packs? any guess ?
    Its really a very bad decision of so called “AAM ADMI KA SARKAR” !!

    THANK YOU MR. A. RAJA!!!

  • sandeep April 23, 2012 8:07 pm

    This may be TRAI’s best stroke as the govt is going to make loads of money from the auctions but whos going to make up for this???definitly us subscribers.And definitly Abhay i think u will be proud of TRAI when u will be paying 3rs/min for evry call u make or maybe more….at last 3g will look cheaper compared to 2g…..

  • ashokumar April 23, 2012 8:04 pm

    Abhay :
    Excellent Move first by Supreme Court and now Govt. of India (TRAI)
    Explained as follows
    For 3G, Spectrum was limited to max. of 4 operators(including state run BSNL & MTNL), therefore, in 3G auction, actual bidding was presumed(& it materialised also in terms of heavy bidding of higher price one after the other by several players due to only 3 slots available after BSNL/MTNL) where as in 2G, no. of free slots(spectrum) is available for atleast 5-6 operators after existing operators in each circle(to be auctioned).Therefore, intensity of fierce battle (for bidding higher prices) will be very much lower than that of 3G therefore, higher bidding price can not be expected on the ground of open/fair auction.Hence, higher reserve price is the only choice for Govt./TRAI to garner/bargain maximum possible finances in lieu of extremely precious “natural” national resource(read spectrum).Therefore, the prices are justified.Also higher license fee will certainly not affect the call/service charges given the competition(average 6-7 major operators in each circle) though it may result in lower ARPU in comparison to higher license fee.Moreover, in 2G only interest is for VOICE Call rather than ill data services offered in the name of EDGE technology claiming 236 kbps which infact is much lower than 150kbps in reality. Also not to forget, still 80 crores out of total 90 crores mobile connection is on 2G so reserve prices are not at all unjustified. Great Move once again i would say. I am proud of TRAI which prefer nation first and companies second.

    but u forget one big thing, that is all the licences of three big players which were given on 1995 are going to end soon, that means they have to shed out as many crores as mentioned here, so tariff hike is inevitable.

  • DJ April 23, 2012 7:58 pm

    The government will make use of the spectrum auction to reduce the debt burden and also it will try to reduce its fiscal deficit….however the people are going to suffer since the telecom market will consolidate with 4-6 companies having subscriber base greater than 5 crores…

  • Abhay April 23, 2012 7:55 pm

    Excellent Move first by Supreme Court and now Govt. of India (TRAI)
    Explained as follows
    For 3G, Spectrum was limited to max. of 4 operators(including state run BSNL & MTNL), therefore, in 3G auction, actual bidding was presumed(& it materialised also in terms of heavy bidding of higher price one after the other by several players due to only 3 slots available after BSNL/MTNL) where as in 2G, no. of free slots(spectrum) is available for atleast 5-6 operators after existing operators in each circle(to be auctioned).Therefore, intensity of fierce battle (for bidding higher prices) will be very much lower than that of 3G therefore, higher bidding price can not be expected on the ground of open/fair auction.Hence, higher reserve price is the only choice for Govt./TRAI to garner/bargain maximum possible finances in lieu of extremely precious “natural” national resource(read spectrum).Therefore, the prices are justified.Also higher license fee will certainly not affect the call/service charges given the competition(average 6-7 major operators in each circle) though it may result in lower ARPU in comparison to higher license fee.Moreover, in 2G only interest is for VOICE Call rather than ill data services offered in the name of EDGE technology claiming 236 kbps which infact is much lower than 150kbps in reality. Also not to forget, still 80 crores out of total 90 crores mobile connection is on 2G so reserve prices are not at all unjustified. Great Move once again i would say. I am proud of TRAI which prefer nation first and companies second.

  • siva April 23, 2012 7:50 pm

    So call rates will be like ten years before. Enjoy India.

  • Jitu.com April 23, 2012 7:38 pm

    loot lo indian public kro…inflation rocks…thnks to Indian Government.

  • abhijith April 23, 2012 7:30 pm

    GREAT INDIAN THAMASHA…………. :) :)

  • Saurabh Jain April 23, 2012 7:29 pm

    Nikhil, u r right said. Actually these Cradles give gov huge money and make policy like this. This will make incumbent totally at bay. Airtel Vodafone and idea gonna make big bang money, Because they already have legal right of super efficient 900Mhz spectrum.

  • Saurabh Jain April 23, 2012 7:26 pm

    Hungry Gov Forget Common people. I wonder why 2G base price set at high. Even 700Mhz Frequency or Digital Dividend Band should kept low for welfare of Indian poor villagers, What the hell? is this!

  • Nikhil April 23, 2012 7:20 pm

    This will hike in mobile call rates and there is union of Airtel,Vodafone and Idea.

  • sAM April 23, 2012 7:10 pm

    One of d worstest decision of d decade..

    Lookz lyk our Govt doesn’t want to allow any telco in India(apart from Airtel,Voda,Relnc,Idea,Tata)

    It also seems dat itz not d decsn of TRAI, dese decsns r taken by d existing telco biggies…

    LOL !!!!

  • Mohit April 23, 2012 6:50 pm

    Mujhe toh kuch samjh he nahe aa rah.
    2014 mei 4g aa jayenga.Toh 2g ka kya achar dalenge.itna mehanga kyu?
    3g toh sasta ho jayenga 2014 tak .hadd hai.no head and no tail of this information