Telecom Commission to discuss spectrum mgmt issue on July 5

To deliberate on Trai’s recommendation on capping the quantity of spectrum in each circle to 8 MHz other than in Delhi and Mumbai and price the extra spectrum beyond 6.2 MHz held by operators at a rate equivalent to 3G

PTI | July 1, 2011



The Telecom Commission, the decision-making body in the Department of Telecom (DoT), will to discuss on July 5 telecom regulator Trai's recommendations on spectrum management and licensing framework.

"Telecom Commission will discuss Trai recommendations dated May 11, 2010 on Spectrum Management and Licensing Framework," a DoT source said.

Trai in its recommendations on spectrum management and licensing framework had proposed capping the quantity of spectrum in each circle to 8 MHz other than in Delhi and Mumbai and price the extra spectrum beyond 6.2 MHz held by operators at a rate equivalent to 3G, for which price was discovered through auction last year in May.

The DoT had set up an internal committee to look into the recommendations of the Trai and place it before the Telecom Commission.

GSM operators, including Bharti Airtel, Vodafone and Idea Cellular, had opposed the Trai recommendations asking the government to dump them, saying these were "retrograde" and "absurd".


They were critical of capping the spectrum at 8 MHz in all circles except Delhi and Mumbai where the limit is 10 MHz, as they thought it would restrict future growth prospects.

According to them, the Trai recommendations including on pricing of spectrum beyond 6.2 MHz were crucial for incumbent mobile operators, as paying higher fees for existing as well as future 2G spectrum will be a big financial burden for telcos, especially Bharti and Vodafone, as their profits have already come under pressure due to intense tariff war.

Trai had also come under attack for recommending refarming of spectrum as per which players holding spectrum in the 900 MHz band would be asked to return spectrum as and when their licence comes up for renewal.

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