Trai: 2G spectrum given away at '01 prices

NEW DELHI: Telecom regulator Trai's new findings are consistent with CAG's comment in its concluding chapter that there can be no denying that the allocation of 2G spectrum had caused a loss to the national exchequer, although the amount of loss could be debated.

This latest analysis shows that 2G spectrum upto 6.2 MHz is valued at 53% of the 3G auction price. Beyond 6.2 MHz, it is valued at 136% of 3G auction price. With Trai's fresh report, it is clear that extremely valuable 2G spectrum was allocated in 2008 at throwaway 2001 prices.

In arriving at these new figures the experts have taken into consideration traffic carrying capacities, equipment dimensioning, propagation characteristics, technical comparisons and economic valuation to calculate the value using two methodologies.

The first is a classical oriented approach while the second is anchored in data of revenues and costs of mobile industry. They have also dealt with detailed comments provided by mobile service providers.