Tata chairman designate and Tata Teleservices MD approach finance minister to discuss spectrum price issues

Telecom Lead India: Tata Group chairman designate Cyrus
Mistry and Tata Teleservices MD Srinath Narasimhan met Finance Minister Pranab
Mukherjee to discuss spectrum price issues.

Tata Teleservices is supporting TRAI recommendation on
refarming of spectum at the end of the existing license period in 2014.

TRAI has suggested that existing operators migrate from current 800 and 900 MHz
spectrum to 1,800 MHz when their permits come up for renewal at a fee
discovered through auction.

Tata Teleservices is primarily a CDMA operator whose base price for the auction
has been set lower than that of GSM spectrum.

Telecom operators have already raised concerns about the steep hike in spectrum
prices, which they say could lead to mobile phone tariffs going up by as much
as 100 percent in certain circles.

TRAI has proposed Rs 3,622.18 crore for one MHz as base or minimum price for
pan-India spectrum in 1800 MHz for auction.

This suggested price is around 10 times higher than the floor price at which
the former Telecom Minister A Raja had allocated spectrum and licences in 2008,
according to a PTI report.

TRAI has suggested that the reserve price for 800 MHz (CDMA) and 900 MHz (GSM)
bands be at least 2 times higher than that of minimum price for 1800 MHz band
(also used be GSM operators currently).

The Empowered Group of Ministers, headed by Mukherjee, is expected to take a
final decision on June 5 on various issues including the reserve price of the

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