GoM backs auction for 3G spectrum
By Joji Thomas Philip, TNN |
Highlights
NEW DELHI: The group of ministers (GoM) set up to resolve the contentious spectrum allocation issue has endorsed Trai���s recommendations that India adopt an auction system with a reserve price of about Rs 1,400 crore per operator for nation-wide 3G spectrum. Operators will have the choice of bidding for individual circles as well.
This implies that the government has rejected the demand of telecom companies (except the tatas) to quash or reduce the 3G entry fee. The government hopes to rake in a minimum of Rs 8,000 crore through the auction of 3G spectrum. Trai had recommended a reserve price of Rs 80 crore for category A, Rs 40 crore for category B and Rs 15 crore for category C circles.
DoT, which had sought the GoM view on the subject, will soon notify Trai���s recommendations on 3G with some ���minor changes���, said sources.
According to them, the GoM failed to find merit in the operators��� stance that this methodology for spectrum allocation ���combined with a high reserve price would affect their rollout and expansion plans, and make the services unaffordable to the common man���.
The members of the group of ministers-set up on the instructions of Prime Minister Manmohan Singh-included communications and IT minister Dayanidhi Maran, defence minister AK Antony, home minister Shivraj Patil, finance minister P Chidambaram, parliamentary affairs and information and broadcasting minister Priyaranjan Dasmunshi and deputy chairman of Planning Commission Montek Singh Ahluwalia.
This implies that the government has rejected the demand of telecom companies (except the tatas) to quash or reduce the 3G entry fee. The government hopes to rake in a minimum of Rs 8,000 crore through the auction of 3G spectrum. Trai had recommended a reserve price of Rs 80 crore for category A, Rs 40 crore for category B and Rs 15 crore for category C circles.
DoT, which had sought the GoM view on the subject, will soon notify Trai���s recommendations on 3G with some ���minor changes���, said sources.
According to them, the GoM failed to find merit in the operators��� stance that this methodology for spectrum allocation ���combined with a high reserve price would affect their rollout and expansion plans, and make the services unaffordable to the common man���.
The members of the group of ministers-set up on the instructions of Prime Minister Manmohan Singh-included communications and IT minister Dayanidhi Maran, defence minister AK Antony, home minister Shivraj Patil, finance minister P Chidambaram, parliamentary affairs and information and broadcasting minister Priyaranjan Dasmunshi and deputy chairman of Planning Commission Montek Singh Ahluwalia.
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