rediff.com
News APP

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  gplay

Rediff.com  » Business » Trai moots 6-fold hike in start-up 2G spectrum price
This article was first published 13 years ago

Trai moots 6-fold hike in start-up 2G spectrum price

Last updated on: February 9, 2011 10:25 IST


Photographs: Reuters

In a development that has huge financial implications for existing as well as new operators, the Telecom Regulatory Authority of India has recommended fixing the price for 6.2 Mhz of pan-India start-up 2G spectrum at Rs 10,972.45 crore (Rs 109.724 billion), more than six times the present cost of Rs 1,658 crore (Rs 16.58 billion).

In its recommendations to the Department of Telecom, Trai has also said that every Mhz of additional spectrum (on an all-India basis) beyond the contracted limit of 6.2 Mhz would cost a massive Rs 4,571.87 crore (Rs 45.718 billion).

Most of the telecom firm, including Bharti, Vodafone, Idea and state-owned companies like BSNL and MTNL, hold extra spectrum beyond 6.2 Mhz and the new norms would put a huge financial burden on these telcos.

. . . 

Trai moots 6-fold hike in start-up 2G spectrum price


Photographs: Reuters

In addition, the licences of some of the operators, including Bharti, are due for renewal after completing 20 years periodicity in several circles. Such companies would have to pay to renew their licences as per the new norms recommended by Trai.

When contacted, Trai chairman J S Sarma told PTI, "Yes we have submitted the recommendations to the DoT on the revised norms for 2G spectrum pricing."

According to the report, the spectrum prices for both categories -- up to 6.2 Mhz and beyond 6.2 Mhz -- vary from circle to circle.

. . . 

Trai moots 6-fold hike in start-up 2G spectrum price


Photographs: Reuters

In the category of up to 6.2 Mhz of spectrum, the prices of one Mhz varies from Rs 7.60 crore (Rs 76 million) in the case of Jammu and Kashmir to Rs 187.38 crore (Rs 1.873 billion) in the case of Tamil Nadu.

In the category of beyond 6.2 Mhz of spectrum, the price varies form between Rs 22.89 crore (Rs 228.9 million) per Mhz in Jammu and Kashmir to a maximum of Rs 431.95 crore (Rs 4.319 billion) in Andhra Pradesh.

The revised prices recommended by Trai are effective from April 1, 2010, the report said.

© Copyright 2024 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.