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TRAI proposes user base for 2G auctions
By siliconindia
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Monday, 12 October 2009, 18:36 IST
New Delhi: The Telecommunications Regulatory Authority of India (TRAI) has suggested an integration of auction and subscriber linked criteria for the allocation of additional second generation (2G) spectrum, reports The Telegraph.
"The eligibility of an operator to bid for the next incremental quantum of spectrum will depend on whether the operator meets a minimum subscriber base," said TRAI.
According to TRAI, the periodic sales of fresh quotas of spectrum through a combination of the auction and subscriber principles were "worth considering." It will soon submit the report to the Department of Telecom (DoT). The DoT had asked TRAI in July for suggestions on the allocation of spectrum or radio waves, to which TRAI had sought time till November.
The Ministry of Finance and the Ministry of Law and Justice support auctioning spectrum to both the new and existing operators who require additional spectrum for expansion.
India is the only country where 2G radio frequencies are given to operators based on their subscriber base. TRAI has also proposed that incremental spectrum be given to GSM operators in portions of one megahertz (MHz). The operators are now given additional radio waves in blocks of 1.8-2.2MHz's.
TRAI also demanded the DoT to set up a technical committee to evaluate and specify the method of allocating spectrum. "The committee should conduct the study needed to establish the rules for implementing the method recommended by TRAI," said the report.
The report proposes that the spectrum should be auctioned beyond 6.2MHz, and regarding the new players, the spectrum allocation and grant of license should be delinked, meaning they must bid for even the 4.4MHz startup frequencies.
In 2007, the practice of allocating radio waves on the basis of subscribers had impacted, as the government decided to increase the number of users that would make the operators eligible for additional spectrum. All telecom service providers in India offer their services using 2G airwaves.
