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The Telecom Regulatory Authority of India (TRAI) on Wednesday recommended that the price of pan-India 2G licence (that comes with contracted 6.2 MHz spectrum) be fixed at Rs.10,972.45 crore — over six times higher than the 2001 price of Rs.1,658 crore that was charged from new operators in 2008. It also said that each MHz of spectrum on pan-India basis beyond 6.2 MHz should be charged at Rs. 4,571.87 crore.
The earlier price of pan-India 1 MHz spectrum based on 2001 cost was just Rs. 267.51 crore. The revised price now is Rs.1,769.75 crore (up to 6.2 MHz) and Rs. 4,571.87 crore (beyond 6.2 MHz). The TRAI has recommended that these prices be implemented retrospectively from April 1, 2010.
In 2001, the lowest per MHz price of spectrum was for the West Bengal circle (Rs.16 lakh) and the highest was Rs.37.58 crore for the Tamil Nadu circle (even higher than for metro circles). In the revised prices (up to 6.2 MHz), the lowest is that of Jammu and Kashmir (Rs.7.6 crore) and the highest again is that of Tamil Nadu (Rs.187.38 crore). And beyond 6.2 MHz, the lowest is again of Jammu and Kashmir (Rs.22.89 crore) and the highest is that of Andhra Pradesh (Rs.431.95 crore).
In its recommendations sent to Telecom Secretary R. Chandrashekhar, the TRAI said: “these prices may be made applicable from April 1, 2010, prorated for the remaining validity of the respective licences while charging for excess spectrum.”
Mr. Chandrashekhar told The Hindu, “We have received TRAI recommendations and it would be forwarded to the Telecom Commission... However, we will also talk to all stakeholders before taking the final decision.”
If the recommendations are accepted fully, incumbent operators such as Bharti Airtel, Vodafone Essar, Idea Cellular and the state-owned BSNL will have to pay for the amount of spectrum they are holding beyond 6.2 MHz. Similarly, other (new) operators who are still to get spectrum are likely to pay for whatever radio waves they would be allotted by the Department of Telecommunications.
Interestingly, as per the Comptroller and Auditor-General of India (CAG) report on issue of licences and allocation of 2G spectrum in 2008, the government earned just Rs.12,386 crore (based on 2001 prices).
But as per the TRAI recommendations, the earnings would have been Rs.65,000 crore (based on 2010 prices).
The earlier price of pan-India 1 MHz spectrum based on 2001 cost was just Rs. 267.51 crore. The revised price now is Rs.1,769.75 crore (up to 6.2 MHz) and Rs. 4,571.87 crore (beyond 6.2 MHz). The TRAI has recommended that these prices be implemented retrospectively from April 1, 2010.
In 2001, the lowest per MHz price of spectrum was for the West Bengal circle (Rs.16 lakh) and the highest was Rs.37.58 crore for the Tamil Nadu circle (even higher than for metro circles). In the revised prices (up to 6.2 MHz), the lowest is that of Jammu and Kashmir (Rs.7.6 crore) and the highest again is that of Tamil Nadu (Rs.187.38 crore). And beyond 6.2 MHz, the lowest is again of Jammu and Kashmir (Rs.22.89 crore) and the highest is that of Andhra Pradesh (Rs.431.95 crore).
In its recommendations sent to Telecom Secretary R. Chandrashekhar, the TRAI said: “these prices may be made applicable from April 1, 2010, prorated for the remaining validity of the respective licences while charging for excess spectrum.”
Mr. Chandrashekhar told The Hindu, “We have received TRAI recommendations and it would be forwarded to the Telecom Commission... However, we will also talk to all stakeholders before taking the final decision.”
If the recommendations are accepted fully, incumbent operators such as Bharti Airtel, Vodafone Essar, Idea Cellular and the state-owned BSNL will have to pay for the amount of spectrum they are holding beyond 6.2 MHz. Similarly, other (new) operators who are still to get spectrum are likely to pay for whatever radio waves they would be allotted by the Department of Telecommunications.
Interestingly, as per the Comptroller and Auditor-General of India (CAG) report on issue of licences and allocation of 2G spectrum in 2008, the government earned just Rs.12,386 crore (based on 2001 prices).
But as per the TRAI recommendations, the earnings would have been Rs.65,000 crore (based on 2010 prices).