TRAI is questioned by DoT panel on 3G auction base price

In another recent development on the TRAI front, the DoT has questioned the TRAI’s decision on the 3G spectrum base price. According to reports, there is a DoT panel which is looking into the TRAI’s recommendation on 3G spectrum price and has questioned its methodology for arriving at the a base rate of Rs. 2720 crore per MHz for the airwaves.

When the year ended, the TRAI recommended this rate for the 3G spectrum which is about 19 per cent lower against the price paid by service providers in the 2010 auction.

The Department of Telecom (DoT) headed panel is believed to have said that this auction should be guided by the benchmark of the determined price of the spectrum in the last auction.

The TRAI has also used the 1800 MHz band reserve price. However, it is still not clear as to how the TRAI came to a conclusion of benchmarking the 3G spectrum price.

A meeting held by the Telecom Commission on January 7, decided to send back the recommendations to TRAI for reconsideration of its stand on the spectrum price.