Fresh norms on 2G spectrum pricing soon: TRAI

The Telecom Regulatory Authority of India will come out with fresh proposals on 2G mobile phone spectrum pricing in the next few days, its chairman J S Sarma said in New Delhi today. "The recommendations will be released in a few days," he added.

TRAI had recommended in May last year that mobile carriers pay a one-time fee for holding 2G radio-spectrum beyond 6.2 mega hertz based on 3G prices - a move that would hit established firms, and drew howls of protest from them.

Later in the month, the regulator had said it would submit fresh proposals to the government after a consultation process.

In May, after a detailed consultation process over eight months, TRAI had said in its 414-page recommendation that 2G spectrum in the 1800 MHz band should be linked to the 3G auction price.

However, when asked whether 2G spectrum would continue to be linked to 3G auction prices in the fresh recommendations, Sarma said, "I do not know".

Much depends on the stand that TRAI takes. The CAG's calculation of a revenue loss of Rs1.76 lakh crore from sale of 2G spectrum in 2008 at 2001 prices on a first come, first served basis rather than auctions is based on TRAI's recommendations of 11 May 2010, which states in Section 3.82, "The authority therefore recommends that the 3G prices be adopted as the 'current price' of spectrum in the 1800 MHz band".