Telecom Regulatory Authority of India proposed a reserve price of Rs 3622 crore for each MHz of spectrum in the 1,800-MHz band and proposed to double the base price of airwaves in the 800 MHz and 900 MHz bands at Rs 7244 crore per unit for pan-India bandwidth in the auction of radio waves which is to be held following the Supreme Court (on 2 February 2012) canceling 122 licenses it allotted after January 2008. For 4G airwaves in the 700-MHz band, it has suggested quadrupling the price to Rs 14488 crore per unit. Largest telecom operator down 5.74%, Idea Cellular down 6.49%, Tata Tele-services -Maharashtradown 2.76% and Reliance Communications down 2.27%.
Reports suggest that these recommendations may have a crippling impact on telecom firms. Trai’s also proposes to charge existing players for surplus spectrum that could result in fees (in thousands of crores) due from incumbents, such as Bharti Airtel, Idea Cellular among others.
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