Price of Spectrum

Telecom Regulatory Authority of India (TRAI) in their letter dated February 08, 2011 to the Secretary, Department of Telecommunications (DoT) has recommended the following estimated price as per the 2010 value of spectrum in 1800MHz band on per MHz basis for a period of 20 years.

i. Rs. 1769.75 Crores per MHz all India upto 6.2 MHz

ii. Rs. 4571.87 Crores per MHz all India beyond 6.2 MHz (incremental spectrum)

Further, TRAI has recommended that the above values given by the experts be adopted as the best available figure. TRAI also recommended that the charging of spectrum in the 1800 MHz band beyond 6.2 MHz, on the basis of these estimated figures, should be unambiguously subject to the condition that the final price could be suitably modified to reflect the market price based on the following:

a) Auction of surplus 2G spectrum in 1800 MHz band if auctioned within 12 months of the decision by the Government in a given Licensesd Service Area (LSA).

b) Otherwise, price in the LSAs where auction was conducted can be appropriately modified for the LSA where auction is not feasible.

TRAI also recommended that these prices may be made applicable from 1.4.2010, prorated for the remaining validity of the respective licences while charging for excess spectrum. These recommendations are under consideration of the Government.