The Telecom Regulatory Authority of India has proposed drastic cut in
base price of spectrum for the next round of spectrum auction.
The reduction in the reserve prices proposed go to the extent of
81.38 per cent.
It recommended an about 60 per cent cut in the pan India reserve price
for the third round of 2G spectrum (1800 MHz )auctions compared to
its previous suggestions.
The entire spectrum freed from the cancelllation of 122 licences in
February,20012 in the 2G spectrum allocation case has to be auctioned.
The proposal to slash the combined spectrum auction reserve price in
the premium 900 MHz band in the circles of Delhi,Mumbai and
Kolkata by about 79 per cent to Rs.650 crore per MHz against Rs.3074.18
per MHz earlier.
The proposal of the TRAI to slash the base price will certainly benefit
the private telecom companies.