In classic Indian government style, it finally went down to the wire. On Saturday, JS Sarma completed his three-year term as chairman of the Telecom Regulatory Authority of India (TRAI). He also submitted a 60-page response to the clarifications sought by the Department of Telecomunications (DoT) on April 23.
On Monday, 14 May current commerce secretary, Rahul Khullar will take over as TRAI chairman.
However, Sarma did not show any leniency to operators as he went. In his reply to the DoT, there is no reduction in the reserve price that he suggested. Also, in the first auction, only one operator will get spectrum in the 1800MHz band. That is because Sarma has reserved spectrum in the 1800MHz band for refarming. Starting 2014, licences of operators with spectrum in the 900MHz band will expire.
Only in the case of CDMA operators, he has suggested where enough spectrum is not available, the reserve price should be 1.3 times the price of 1800MHz band spectrum. Earlier he had recommended it as double the price of 1800MHz band spectrum.
Lastly, as a parting shot, Sarma has raised the spectrum usage charge to 3% from his original recommendation of a flat 1%.
It remains to be seen what DoT does with the suggestions. It is not imperative for DoT to accept the recommendations.
It is believed that DoT will just opt for the auction of 1800MHz spectrum and junk all the other suggestions. That would be taken up by Khullar. Also, now that former telecom secretary Siddharth Behura is out on bail, there is a feeling that the worst is over for the sector.
Let's hope Khullar can do what no other regulator has managed till date--be strong and draw the road map for forward looking policies.
On Monday, 14 May current commerce secretary, Rahul Khullar will take over as TRAI chairman.
However, Sarma did not show any leniency to operators as he went. In his reply to the DoT, there is no reduction in the reserve price that he suggested. Also, in the first auction, only one operator will get spectrum in the 1800MHz band. That is because Sarma has reserved spectrum in the 1800MHz band for refarming. Starting 2014, licences of operators with spectrum in the 900MHz band will expire.
Only in the case of CDMA operators, he has suggested where enough spectrum is not available, the reserve price should be 1.3 times the price of 1800MHz band spectrum. Earlier he had recommended it as double the price of 1800MHz band spectrum.
Lastly, as a parting shot, Sarma has raised the spectrum usage charge to 3% from his original recommendation of a flat 1%.
It remains to be seen what DoT does with the suggestions. It is not imperative for DoT to accept the recommendations.
It is believed that DoT will just opt for the auction of 1800MHz spectrum and junk all the other suggestions. That would be taken up by Khullar. Also, now that former telecom secretary Siddharth Behura is out on bail, there is a feeling that the worst is over for the sector.
Let's hope Khullar can do what no other regulator has managed till date--be strong and draw the road map for forward looking policies.
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