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.

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