TRAI recommends over six-fold cost for 2G spectrum

New Delhi, Feb 9 (PTI) Virtually in line with estimatedloss pointed out by Comptroller and Auditor General (CAG) in2G spectrum allocation, telecom regulator TRAI todayrecommended Rs 10,972.45 crore for a pan-India license with6.2 Mhz spectrum.

Going by this valuation, six new pan-India licenses givenin 2008 would have garnered Rs 65,834.7 crore to thegovernment along with additional revenue from other firms whowere given licences in fewer circles.

The CAG had estimated loss of up to Rs 1.76 lakh crorefrom 2G spectrum allocation .

This had included new licences, dual technology licencesand revenues from additional spectrum beyond the contractedlimit of 6.2 Mhz held by various operators especially BSNL,Bharti and Vodafone.

The Telecom Regulatory Authority of India (TRAI) has alsorecommended ''one-time'' entry fee for additional spectrumbeyond 6.2 Mhz.

In fact the regulator has classified valuation of spectrumin two categories. There are different prices forspectrum up to contracted limit of 6.2 Mhz and different foradditional airwaves.

The spectrum price varies from circle to circle in bothcategories. In case of contracted limit, the price ranges fromRs 7.60 crore per Mhz in Jammu and Kashmir to Rs 187.38 crorein Tamil Nadu.

For the additional spectrum the range is Rs 22.89 crorein Jammu and Kashmir to Rs 431.95 crore in Andhra Pradesh.

These revised prices should be made applicable witheffect from April 1, 2010 on pro-rata basis depending upon thenumber of years left for licences to expire, the TRAI saidadding that any licence coming up for renewal would have topay for spectrum based on new price.

These prices are for spectrum in 1800 Mhz band. MORE PTISR PRS SKB