Auction may decide price of spectrum

Auction may decide price of spectrum

The Telecom Commission has recommended that price of spectrum should be determined through auction in the future, both for 4.4 MHz start-up airwaves and additional bandwidth required by telecom operators.

The Commission, in its recommendations to Union Telecom Minister Kapil Sibal, said all spectrum allotments beyond 4.4/2.5-Mhz will be charged at market price, both for existing as well as new allottees, and the price for spectrum in the 800/900-MhZ band will be 1.5 times the price of spectrum in the 1800-Mhz band.

Apart from spectrum pricing, the Commission has recommended a uniform licence fee of 8 per cent of adjusted gross revenue (AGR). Though the telecom industry has been demanding a lower licence fee of 6 per cent of AGR.