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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77 Comments on "TRAI Sets 2G Spectrum Reserve Price Higher Than 3G"

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Kavi
Kavi
April 28, 2012 3:00 pm 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
Sathish
April 25, 2012 1:28 pm 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… Read more »
Roy
Roy
April 25, 2012 11:26 am 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
Roy
April 24, 2012 10:58 pm 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
Sunny
April 24, 2012 6:59 pm 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… Read more »
VB
VB
April 24, 2012 5:47 pm 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
VB
April 24, 2012 5:45 pm 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
bhopal
April 24, 2012 5:20 pm 5:20 PM

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

sushant gupta
sushant gupta
April 24, 2012 4:11 pm 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
Abhijit
April 24, 2012 4:07 pm 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. 🙁

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