TRAI Consultation Paper on 800 MHz Spectrum wants stakeholders’ opinion on pricing

NEW DELHI: The Telecom Regulatory Authority (TRAI) of India has asked stakeholders for their views on whether the value of 800 MHz spectrum should be derived on the basis of the value of 1800 MHz spectrum using technical efficiency factors.

It has also sought to know the block size in the 800 MHz band and what should be the quantum of spectrum in the 800 MHz band that should be put up for auction.

It has also asked if there is any case for application of a lower efficiency factor (1.3) over the valuation of 1800 MHz spectrum, for determining the valuation of 800 MHz, as was done in the previous auction and give detailed reasons for the same.

The stakeholders have been asked if the value to be paid for 800 MHz spectrum should be based upon the potential growth in data services.

The questions have been asked in a Consultation Paper by TRAI on the Reserve Price of the Spectrum for 800 MHz in response to a query in this regard by the Department of Telecommunications on 12 December.

Written Comments on the Consultation Paper are invited from the stakeholders by 15 January and counter-comments by 22 January. As the issue has to be decided urgently, no extension will be granted. Comments and counter-comments will be posted on TRAI’s website

Open House Discussion (OHD) on this consultation paper will be held on 27 January, 2014 in New Delhi. This may be treated as an advance notice for the OHD.

Other questions include whether the value of spectrum in the 800 MHz band should be assessed on the basis of producer surplus on account of additional spectrum and reasons and calculations for the views given.

TRAI also wants to know if the value of spectrum in the LSAs in India for 800 MHz should be determined by utilising the data on international prices or what other variables can be suggested for arriving at robust value estimates using the multiple regression approach.

Apart from the approaches discussed in the paper, TRAI wants to know if there are any alternate approaches for valuation of spectrum in 800 MHz that you would suggest.

It has also sought opinion on the ratio adopted between the reserve price for the auction and the valuation of the spectrum.

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