Telcos meet Secy over Trai recommendations on spectrum auction

DoT expecting to receive Trai's recommendation by May 17

PTI | May 1, 2012




Representatives from four companies, whose licences have been cancelled by Supreme Court in February, today met Telecom Secretary R Chandrashekhar on issue of spectrum auction and expressed their concern over recommendations made by sector regulator Trai.

According to sources, Telenor Group Executive Vice President and Uninor CEO SigveBrekke, along with representatives from Idea Cellular, SistemaShyam Teleservices and Videocon Telecommunications, who were part of the meeting.

"The appointment was sought when June 2 deadline for licence cancellation was hanging. Representatives expressed concern on Trai's recommendation on spectrum auction. Telecom Secretary assured that auction related matters are being dealt expeditiously," sources said.

Brekke is learnt to have apprised Telecom Secretary about his concern on sustainability of company's business if Trai's recommended prices for spectrum auction are accepted by the government.

Trai on April 23 recommended a base price of Rs 3,622 crore for a megahertz of pan-India spectrum, which is around 10 times higher than the price at which 2G licences, bundled with 4.4 Mhz spectrum were allocated in 2008 under then Telecom Minister A Raja.

According to TRAI recommendations, a minimum of 5 Mhz should be allotted, which means that pan-India spectrum in 1800 MHz band will cost Rs 18,000 crore.

However, Telecom Secretary said things can be further expedited only after receiving final recommendations from Trai.

"He said that DoT is expecting to receive Trai's recommendation by May 17 as scheduled and only try to get it at an earlier date," sources said.


 

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