Telcos seek review of reserve price for 900 MHz spectrum

Tribune News Service

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New Delhi, January 9

The Cellular Operators’ Association of India (COAI), an umbrella body of GSM telecom operators, has expressed concern over the reserve price proposed by the government for 900 MHz band spectrum in the upcoming telecom airwave auction, saying it was too high and sought its review.

In a letter written to Communication and IT Minister Ravi Shankar Prasad, the COAI has said, “The reserve price for the proposed auction of spectrum in the 900 MHz band in 18 service areas have been increased by 32.5% over the reserve price recommended by TRAI”.

“We would like to submit that the reserve price for 900 MHz band recommended by TRAI was already too high, and a further escalation by 32.5% is completely unreasonable. Across all 18 circles where 900 MHz auction is proposed, this translates into a steep increase of Rs 4,880 crore for 5 MHz of spectrum,” said the letter written by COAI director-general Rajan S. Mathews.

“We reiterate such steep increases would lead to major impact on growth and expansion of quality networks in coming years and adversely impact the consumers,” the letter said.

In December 2015, seven licences each of Idea and RCom, four licences of Bharti Airtel and six licences of Vodafone will complete their 20-year term after which they should be renewed.