DoT sets up committee to study Trai’s recommendations on auctioning spectrum

DoT sets up committee to study Trai’s recommendations on auctioning spectrumThe Department of Telecommunications (DoT) has set up a committee to study the Telecom Regulatory Authority of India's (Trai's) recent recommendations for upcoming spectrum auction.

Trai made several notable recommendations on auctioning spectrum in the 800 Mhz ban, 900 Mhz ban and 1800 Mhz band, including levy of a flat spectrum usage charge (SUC) and cutting the base price of spectrum used by GSM operators by around 60 per cent.

Commenting on the recommendations, ratings agency ICRA said, "The recommendations provide a major relief to the industry by reducing the spectrum reserve price and thus will have far-reaching consequences in terms of lowering the cost of spectrum renewal."

The telecom regulator, however, did not make any suggestion on the pricing of spectrum in the 800 MHz band which is used by CDMA operators, saying no auction was needed because of lack of demand.

It also suggested that operators that own airwaves in the 900 MHz and 1800 MHz bands must give up those airwaves on the expiry of their licences, adding the operators could purchase the airwaves back though auctions.

The nine-member committee, headed by DoT member (technical) Anil Kaushal, will scruitinize the suggestions and submit its report within a month.