Trai to take call on spectrum allocation to BSNL, MTNL

The Telecom Regulatory Authority of India (Trai) on Tuesday said it has received the government's reference on allocation of 4G spectrum to BSNL and MTNL and will soon start the consultation process.

"Trai will hold consultations on 4G spectrum allocation to BSNL and MTNL soon. We have received the reference some days back," Trai Chairman R S Sharma told reporters here.

The Trai is expected to discuss issues on whether the government-owned companies should be given the radio waves outside auction, and the price and quantum of 4G spectrum to be given.

Earlier, the Digital Communication Commission, the highest decision-making body for telecom, had advised that the Department of Telecom (DoT) take suggestions from Trai on the allocation of spectrum to state-run telecom firms. This was because the Supreme Court had earlier ruled that all spectrum should be allocated through auction only.

Based on Trai's view, the DoT will take a decision on the allocation of spectrum to these two firms. At present, the BSNL and MTNL offer 2G and 3G services. However, to survive the highly competitive market, the companies are required to start 4G services.

Both the telecom firms have asked the government to allot them spectrum for 4G services in lieu of equity.