Telecom Commission to discuss spectrum price on Nov 6 meet

Telecom Commission, the highest decision making body of the Department of Telecommunications (DoT), is likely to discuss key issues, including spectrum price for the third round of auction and M&A guidelines, in a meeting on November 6.

“The TC will be discussing the merger and acquisition (M&A) guidelines and spectrum price issue on November 6,” a source in DoT said.

The inter-ministerial panel was expected to discuss M&A guidelines and spectrum price issues on October 29 but the meeting was cancelled.

In its clarifications to DoT, the Telecom Regulatory Authority of India (TRAI) had reiterated its recommendations for a huge cut in the spectrum price for the upcoming auction.

The regulator had recommended up to 62 per cent reduction in reserve price for 900MHz spectrum in Mumbai, Delhi and Kolkata circles, and a 37 per cent cut in reserve price of 1800MHz spectrum band.

Trai also stood by its recommendation of not auctioning of 800 MHz band, used by CDMA operators.

According to sources, the Finance Ministry representative in the Commission has asked for indicative base price for all CDMA and premium 2G spectrum in all circles that were not incorporated in recommendations made by sector regulator TRAI.

However, this information could not be officially confirmed.

With regard to M&A guidelines, the DoT is considering to allow a market share of up to 50 per cent of the resultant entity in case of merger and acquisitions from 35 per cent earlier.

The companies will also be allowed to retain two blocks of 3G spectrum in respective areas as a result of the merger, sources said.