TRAI recommendations on 3G spectrum released
TRAI today released its recommendations (PDF) for 3G spectrum allocation in India. The allocation and also the waiting list, if any of telecom service operators should be determined through a process of auction. Only licensed telecom service operators will have the eligibility for participation (Zee which had sought 3G spectrum for Mobile TV is no more eligible) in the auction. Reserve price for spectrum in the 2.1 GHz band shall be:
- Rs. 80 Crore for Mumbai, Delhi, Category A circles
- Rs. 40 Crore for Chennai, Kolkatta, Category B circles and
- Rs. 15 Crore for Category C circles.
This implies a base price of Rs1,050 crores for all India presence above which the auctions will be held. Recall, the GSM association had offered Rs300 crores for the spectrum. The regulator has recommended three sets of frequency bands – 450 mhz, 800 mhz and 2.1 ghz. The allocation of 3G should be treated as a standalone exercise and not as an extension to existing 2G spectrum. Stiff penalty for non-compliance. The 3G services are expected to be available at most places in India by Q2-2007.
With the current recommendations only 5 operators can be accomodated. Bharti Tele-Ventures Limited, Reliance Communications Ltd (RCOM), Tata Indicom, Hutch and BSNL are the major five operators with all India presence. Idea Cellular and Aircel are also catching up with their recent license approvals but are unlikely to make it to the first round of 3G auction.
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[...] TRAI in its proposal had recommended a reserve base price of Rs1,050 crores for PAN-India 3G license. With current recommendations, only 5 operators can be accomodated and it will be an interetsing race as we already have 5 service providers(Reliance Communications Ltd through Reliance Infocom, Bharti Tele-Ventures Ltd, BSNL, Tata Indicom and Hutch) with PAN-India presence who are desperate for the spectrum. [...]
[...] it comes to 3G, Indian Telecom is moving at snail’s pace. TRAI recommendations on 3G and BWA were out late last September, still their is no sight of auction but just hopes. Since TRAI said [...]
Sir,
It is an excellent proposal. When can I expect it in effect.
[...] Kolkata and Category – B Service Area – Rs 80 crore and Category – C Service Area Rs 40 crore. [ 3G Spectrum reserve prices have doubled since TRAI's recommendation in [...]