The Telecom regulatory Authority of India (Trai), on Monday, floated a consultation paper on valuation and reserve price of 800MHz spectrum band, currently used by the CDMA operators.
The move comes after a series of communication between the sector regulator and the Department of Telecommunications (DoT). While Trai had, in September, suggested that there was no need for auction of 800MHz spectrum and an extended GSM band should be adopted taking spectrum out of this band, an internal committee of the DoT has opposed the recommendation by the sector regulator.
Trai had also said that by adopting the extended GSM band, the Government could get three to four times more value of the same spectrum.
In the consultation paper, Trai has invited views of interested entities on valuation of CDMA spectrum proposed to be sold through auction. "On 12 December 2013, the DoT requested the Authority to furnish their recommendations on reserve price for 800MHz (CDMA) band in all service areas...In this context, Trai has issued consultation paper raising specific issues for consideration of stakeholders," Trai said in a statement.
Interested entities or people can give their comments on the consultation paper by 15 January and counter comments by 22 January, it said.
Trai will hold open-house discussion on the subject on 27 January after which it will give its recommendations on minimum price that should be kept for CDMA spectrum.
In the consultation paper, Trai said that DoT has proposed to auction 57.5MHz of CDMA spectrum but there would be additional 50MHz of these frequencies available if the department accepts Tata Teleservices' offer to surrender additional CDMA spectrum, state-run Mahanagar Telephone Nigam Ltd (MTNL) vacates entire CDMA band and Bharat Sanchar Nigam Ltd (BSNL) retains one slot of these frequencies.
DoT had earlier said that quantum of spectrum to be put for auction will be decided by government separately.
The Government had earlier reduced the pan-India reserve price of 800MHz spectrum by about 50% for the auction in March 2013, which received Sistema Shyam Teleservices as the only bidder, after it failed to attract any bidder in the auction conducted in November 2012.
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