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HomeNewsBroadband and IPTV NewsBroadband India Forum not happy over TRAI’s spectrum pricing; wants revaluation
Sunday, 07 April 2019 05:30

Broadband India Forum not happy over TRAI’s spectrum pricing; wants revaluation

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As per Broadband India Forum (BIF), the spectrum pricing of the telecom regulator TRAI is higher than global average. 

BIF is an association of the telecom network and broadcasters. It has questioned the TRAI methodology of calculating reserve price for spectrum, alleging this has resulted in spectrum prices being unreasonably higher than global price lines.

The association wrote a letter to the TRAI chairman R.S. Sharma and said "TRAI Methodology of calculating Reserve Price does not rely much on fresh valuation".

As per BIF, the reserve prices can be referenced back to last auction only if it is not more than one year old. In case spectrum is auctioned after a gap of more than a year of last auctions (in this case the last auction happened in 2016), spectrum must be valued afresh to take into account the current market structure and condition. 

TV Ramachandran, president, IBF, said in the letter, “In the latest spectrum pricing recommendations of TRAI, though fresh valuation has been computed for each circle, it is not applied to all circles. For instance in 1800 MHz, for 19 out of 22 circles, fresh valuation is not used. These circles have been computed using indexation and valuation methods have been simply ignored.”

As reported earlier, Airtel chairman Sunil Mittal too had hit out at the regulator for 5G spectrum price terming it higher saying Airtel would not buy 5G spectrum at the current prices, though TRAI chairman has stuck to his ground and had said the pricing of 5G and other bands were done in consultation with the stakeholders and government has not found any issues with the TRAI pricing.

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