COAI wants Rs 300 cr cost for 3G spectrum
Cellular operators association COAI has suggested a price of around Rs 300 crore for All India 5 MHz spectrum for mobile players to roll out 3G services.
By PTI |
NEW DELHI: Cellular operators association COAI has suggested a price of around Rs 300 crore for All India 5 MHz spectrum for mobile players to roll out 3G services.
COAI's fresh suggestion has come in wake of telecom regulator TRAI advocating a per MHz fee for spectrum at the rate of Rs 85-120 crore.
As per this methodology, a cellular operator would have to pay a price of a whopping Rs 10,000 crore if it wants an all-India roll out of 3G services.
"As regards applying a per MHz price for spectrum, it is submitted that the rate of Rs 85-120 crore per MHz charged in the far more economically-developed and affluent European countries cannot be simplistically applied to India as this would work out to an exorbitant price of Rs 10,000 crore or more, for all-India 5 MHz spectrum. This would make 3G a complete non-starter and completely negate the benefits that the technology can deliver," COAI said in a letter to TRAI.
The association argued that the European economies have about a 33 times higher GDP per capita than India ($25,000 as compared to around $750).
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"It is therefore submitted that if at all such a benchmark is to be contemplated, it should be adjusted downward based on the ratio of GDP per capita to make the pricing more relevant to the Indian market and environment."This would mean a price of around Rs 300 crore for All India MHz spectrum," it said.
COAI has also put forward its suggestions of reaching a much affordable cost of 3G spectrum for an India roll-out.
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