Trai Recommends Higher Base Price For 2G

Telecom Regulatory Authority of India (TRAI) has proposed an unexpectedly highe base price of INR 36.22 billion rupees in the 1800 mega hertz band for the forthcoming auction of 2G services, reports Reuters.

The Trai has also recommended to make auction an open process where all the eligible telcos who are currently holding spectrum below the prescribed cap can participate. This means that some of the prominent operators like Bharti Airtel Ltd. and Vodafone India might not be able to participate in the auction. This was also the demand of the new operators, specifically Uninor and Sistema Shyam TeleServices Ltd. that the incumbents should not be allowed to participate in the new 2G auction.

"Vodafone India is deeply concerned to read the TRAI recommendations. We believe that several of these recommendations are retrograde and if accepted, will do irreparable harm to the industry. It will hamper the ability to connect the unconnected and goes against the objectives of National Telecom Policy of ensuring improved rural tele-density and right to broadband," says the media statement issued by Vodafone.

- Jatinder Singh, Principal Correspondent, Light Reading India