New Delhi: Telecom Watchdog, an NGO, has alleged that TRAI's recommendations on spectrum pricing favour large firms and would lead to about Rs 30,000 crore loss to the government.
"The recommendations (by TRAI) have been synchronised to favour large telecom firms, whose licenses are due for renewal in November 2014 in the two metros. The government is bound to lose about Rs 30,000 crore for this slash that Trai has recommended," Telecom Watchdog Secretary Anil Kumar said in a letter addressed to Prime Minister Manmohan Singh.
"We request you not to accept Trai's recommendations for slashing of spectrum in 900 MHz ~~amp;amp; 1800 MHz bands in Delhi ~~amp;amp; Mumbai; keep the reserve price at the same level or slightly less as compared to the previous auction price; and not to proceed with DoT's proposal to extend the tenure of Trai s Chairman ~~amp;amp; Members from three years to five years," the NGO said.
Telecom Regulatory of India (TRAI) has recommended up to 62 per cent cut in base price of 900 Mhz spectrum and about 37 per cent cut in price of 2G spectrum compared to the amount fixed by government for last auction.
TRAI has suggested a pan-India reserve price of Rs 1,496 crore per MHz in the 1800 band. In the 900 MHz band, which is used by GSM players, it recommended a reserve price of Rs 288 crore per MHz for Delhi, Rs 262 crore for Mumbai and Rs 100 crore for Kolkata. These rates are about 60 per cent lower than the previous reserve price.
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