Trai reduces reserve price for CDMA, no change in stand on 2G auctions

Telecom Lead India: The Telecom Regulatory Authority
of India (Trai) has reaffirmed most of its proposed rules for an auction
of mobile airwaves.


The rules also include tenfold increase in base price for
bids, despite protests by carriers in the world’s second-biggest mobile phone
market.  JS Sarma, the outgoing TRAI chairman has made only three
exceptions from his earlier recommendations, which have been reprimanded by the
telecom players.


Trai proposed to reduce the reserve price
of CDMA spectrum but made no change in its price recommendation
for GSM spectrum auction. The regulator suggested a cut in the
reserve price of CDMA spectrum from twice to 1.3 times the base price
recommended for the 1,800 MHz band. The reduction, however, will be valid only
in states where airwaves less than 5 MHz are available for auction.

JS Sarma has increased the spectrum usage charge to 3 percent, from the earlier
proposal of 1 percent of the telcos’ gross revenues, which he believes would
increase savings for the telecom sector. ”

The third recommendation of the regulator suggested that a second block of 5MHz
should be made available for bidding wherever there is frequency available in
teh 1800 MHz band after reserving for refarming and a block available for one

The government has been given time till August 31 to complete auction of
spectrum and licences for all operators affected by the Supreme
Court ruling cancelling 122 licences awarded by former telecom minister A
Raja, show is now in jail facing corruption and criminal conspiracy


Indian telecom industry welcomes new TRAI chairman Rahul


The Indian telecom industry is expecting that Rahul
Khullar, the new chairman of TRAI, will set new benchmark for the domestic
sector which is going through a tough phase.


The domestic telecom industry feels that as Commerce
Secretary, Khullar is credited with trade normalization between India and


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