The confusion continues!
The Empowered Group of Ministers (eGoM) met again today to decide on the base price for auctioning 2G spectrum. While the meeting is over there is yet no clarity on what has been decided. While communications & IT minister Kapil Sibal refused to give details, sources privy to the deliberations said the eGoM has decided to lower the TRAI suggested base price. The eGoM has also agreed to allow operators to stagger the payment.
Though the numbers are still not available, the base price for the auction of 5MHz of spectrum could range between Rs 14,000 crore to Rs 16,000 crore in the 1800MHz band. In that case the spectrum usage charge (SUC) would range between 3-6%. At Rs 16,000 crore the SUC would be 3% and would rise by one percentage point as the base price increases by Rs 1,000 crore.
However, no decision was taken on the one-time fee that DoT had proposed to levy on existing telecom operators by making changes in their licence conditions.DoT wants incumbents to pay auction-discovered price for the spectrum they hold, a move bitterly opposed by CDMA operators.The Union Cabinet will take a final decision on the prices of telecom spectrum and one-time fees payable by incumbent telecom operators.
It is unlikely that the Cabinet will take a decision on the pricing of spectrum till such time as the eGoM comes up with a formula for prospective licensing. Essentially, the spectrum drama continues.
The Empowered Group of Ministers (eGoM) met again today to decide on the base price for auctioning 2G spectrum. While the meeting is over there is yet no clarity on what has been decided. While communications & IT minister Kapil Sibal refused to give details, sources privy to the deliberations said the eGoM has decided to lower the TRAI suggested base price. The eGoM has also agreed to allow operators to stagger the payment.
Though the numbers are still not available, the base price for the auction of 5MHz of spectrum could range between Rs 14,000 crore to Rs 16,000 crore in the 1800MHz band. In that case the spectrum usage charge (SUC) would range between 3-6%. At Rs 16,000 crore the SUC would be 3% and would rise by one percentage point as the base price increases by Rs 1,000 crore.
However, no decision was taken on the one-time fee that DoT had proposed to levy on existing telecom operators by making changes in their licence conditions.DoT wants incumbents to pay auction-discovered price for the spectrum they hold, a move bitterly opposed by CDMA operators.The Union Cabinet will take a final decision on the prices of telecom spectrum and one-time fees payable by incumbent telecom operators.
It is unlikely that the Cabinet will take a decision on the pricing of spectrum till such time as the eGoM comes up with a formula for prospective licensing. Essentially, the spectrum drama continues.
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