DoT Asked to Prepare Set of Reserve Price and Govt Revenue

New Delhi: The Empowered Group of Ministers (EGoM) asked the Department of Telecom to prepare a matrix of reserve price of spectrum auction and its impact on tariffs and revenue to the government. According to sources, DoT has been asked to prepare a matrix of various levels of reserve price and spectrum usage charge at every Rs 1,000 crore difference in descending order and the impact that would have on tariffs for end-consumer and the revenue accrued to the government. The same is to be presented to the EGoM in its next meeting, scheduled for July 20. Sectoral regulator Telecom Regulatory Authority of India (Trai) had recommended a minimum price of over Rs 3,622 crore for auction of a single unit of spectrum amounting to over Rs 18,000 crore for a pan-Indian operations in case of a new entrant. The reconstituted EGoM, under Home Minister P Chidambaram, is also believed to have pushed the decision on staggered payment option for telecom operators. On roll-out obligations, the EGoM cleared the proposal making it mandatory for operators, who will receive spectrum through auction, to cover 10% of Block Headquarters in three years, 20% in four years and 30% in five years. For old operators, roll-out obligations would remain as per their licencing conditions, but the new clause will apply on them if they win spectrum in auction, sources said