Spectrum resale: TRAI proposals may not be final

The Telecom Regulatory Authority of India may reconsider its controversial recommendations on auction of radio spectrum released through a Supreme Court order in early February cancelling 122 telecom licences, according to a report in The Economic Times.

A 'senior official, aware of the developments, said TRAI was prepared to modify its recommendations if the government asks it to do so, according to the report.

This seems to contradict all other reports emanating over the last few days including today that TRAI is not willing to budge on its recommendations for the resale of spectrum; and new TRAI chairman Rahul Khullar is not willing to change the auction policy created by his predecessor J S Sharma.

Another report from the Hindustan Times says the TRAI has written to the department of telecommunications (DoT) asking it to reject amendments to the auction guidelines proposed by telecom companies.

The semi-autonomous TRAI's decisions in the end amount to little more than recommendations. The final decision would be taken by the telecom ministry and the DoT, which functions directly under the ministry.

In its recommendations submitted in April, TRAI has called for a reserve (minimum bid) price of Rs3,622 crore per megahertz; about 10 times the price which established companies like Vodafone and Bharti Airtel paid for the spectrum which they got before 2008.