Telecom Regulatory Authority of India (TRAI), on Wednesday, reiterated its earlier recommendations for up to 60 per cent cut in the reserve price for sale of spectrum in the upcoming third round of auction.
TRAI had sent its recommendations on ‘valuation and reserve price of spectrum’ in September to the Department of Telecommunications (DoT). The DoT had sought clarifications of some of the recommendations.
Responding to clarifications sought, TRAI reiterated that the auction reserve price for spectrum in the 900 MHz band in some key cities be cut by 60 per cent. It had also suggested 37 per cent cut in the reserve price for spectrum in the 1800 MHz band.
Further, it stuck to its stand of not auctioning 800 MHz band in the auction saying there was a large gap in the worth of spectrum in its present use as against its potential use, and “it would simply not be prudent…to take a hasty decision in the matter.” On the methods used for calculating the reserve price, it said, “The methodologies used by the Authority are grounded in economic theory and have widespread international acceptance.”