Recommendations on 2G spectrum prices to be out soon: TRAI

NEW DELHI: After facing stiff resistence from incumbent operators on linking 2G spectrum prices with those of 3G, telecom regulator Trai today said it would soon submit fresh recommendations on the issue to the government.

"In May 2010 recommendations, we had clearly said we will be apprising the government of results of our study. So the results of the study will be apprised in the course of next few days," Telecom Regulatory Authority of India (Trai) Chairman J S Sarma told reporters here.

Last May, Trai had floated the proposal for linking 2G spectrum prices with 3G radio wave rates. The proposal came after the auction for third-generation (3G) spectrum raked in over Rs 67,000 crore for the government.

However, due to stiff opposition from the existing GSM service providers, Trai had said it would revisit the issue and finalise the proposal.

"This (proposal) is regarding the pricing of spectrum, pricing to be done in future," Sarma said.

Trai's earlier recommendations included levying one-time charge on operators holding excess 2G spectrum beyond 6.2 MHz. It had suggested that every Mhz of spectrum beyond 6.2 should be linked to 3G auction bid and also at the time of renewal of licences.

With leading incumbent operators (especially Bharti and Vodafone), whose licences will come up for renewal over the next few years, would have had to pay very high price in case the Trai proposals would have taken effect.

The regulator was earlier expected to submit its proposal by the end of December 2010.