Valuation and Reserve Price of 4G Spectrum- (Telecom Regulatory Authority of India) (18 Apr 2016)

Media and Communication

The Telecom Regulatory Authority of India responded to a reference from the Department of Telecommunications for estimating reserve price for auction of spectrum in several bands. Its reply comes on the back of DoT observations made from TRAI recommendations made earlier in the year.

The response considers the DoT’s stance on many aspects, including piecemeal auction of blocks of spectrum for the possibility of insufficient demand, harmonisation exercises to realign spectrum allocation and, of course, valuation of spectrum.

TRAI based its opinion on the need for greater availability of internet services to vast swathes of the population, which would be achieved only with immediate availability of spectrum for commercial use. It suggested proactive steps to ensure full spectrum utilisation, a lack of which lost government revenue and opportunities for providing services to more consumers.

It defended its valuation of spectrum and put forth the “bottom-up” approach as the being most suited for valuing and reserve price of spectrum. TRAI’s valuation of individual bands of spectrum varies greatly by region. Whereas Delhi and Mumbai have a recommended about Rs. 180 crore per megahertz, Himachal Pradesh and North Eastern States have spectrum valued at under Rs. 2 crore per megahertz.

Tags : TRAI VALUTION AND RESERVE PRICE SPECTRUM 4G