(11 July 2008 5:00 pm)

NEW DELHI: Telecom Regulatory Authority of India (Trai) today released recommendations on allocation and pricing of spectrum for 3G and broadband wireless (BWA) services for 2.3-2.4 GHz, 2.5-2.69 GHz and 3.3-3.6 GHz bands.

Earlier on 27 September, 2006 Trai had sent its recommendations to the government on allocation and pricing of spectrum for 3G and broadband wireless access (BWA) services.

At that time when these recommendations were given to the government, the spectrum in the 2.3-2.4 GHz and 2.5-2.69 GHz bands were not available for allocation and therefore it was recommended by Trai that the allocation and pricing methodology should be decided after the bands are being made available.

After the spectrum was being made available on 2 June, 2008, Trai had issued a consultation paper based on the comments received from the stake holders and in-house analysis.

In the consultation paper the authority had recommended subjects like, for the spectrum bands of 2.3-2.4 GHz, 2.5-2.69 GHz and 3.3-3.4 GHz, UASL, CMSPs and Category ‘A’ & ‘B’ ISPs should be eligible for participating in the auction for the spectrum.

The leftover spectrum in 3.3-3.4 MHz band after migration to circle level operation should be auctioned to other service providers in blocks of 2x7 MHz, so as to ensure level playing field with the existing service providers. Those service providers who already have 2x7 MHz spectrum and are migrating to Circle level operation as required, shall not be eligible for participation in the auction.

The paper also suggested that the existing service providers having less than 2x7 MHz spectrum in this band will have the option either to continue with the existing spectrum or participate in the auction process for 2x7 MHz spectrum after submitting an undertaking to DoT, that in case they are successful in the auction they will surrender the spectrum already held by them.

While Trai was finalising the recommendations, DoT in its letter on 1 July 2008 requested the authority to modify certain issues like eligibility, amount of spectrum to be allocated, reserve price and performance bank guarantee, auction process methodology and extension of license of the successful bidders.

Trai while framing the recommendations again had addressed the issues mentioned in DoT’s letter and a separate reply had bent sent to DoT.

Both the letter to DoT and a copy of the recommendations are available on the Trai website.