COAI agrees to entry fee for 3G spectrum

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The GSM lobby seems to have bought Ratan Tata's logic on pricing 3G spectrum. The Cellular Operators Association of India, COAI, has agreed to Rs 2000 crore as entry fee for 3G services divided among national operators, reports CNBC-TV18.

 

Telecom Regulator Nripendra Misra has his hands full trying to bring about a consensus on pricing of 3G spectrum. And his efforts seem to have paid off with the GSM lobby agreeing to an entry fee of Rs 1500-2000 crore for 3G spectrum, to be shared by all the national operators.

 

TV Ramachandran, Director General, COAI says "We are okay with an entry fee in lieu of farming spectrum, something like Rs 2000 crore, which can be divided among all operators."

 

This means each operator would end up paying about Rs 300-400 crore as entry fee for 3G spectrum. That's still way below Ratan Tata's suggestion of Rs 1500 crore per operator. Former TRAI Cheif Pradip Baijal had given a thumbs-down to an entry fee for 3G spectrum. But will the current regulator change track?

 

And while a consensus might come around on pricing, there is none on the bands that need to be allocated to the two rival technologies. Time is clearly running out, but the regulator is confident of meeting the September 30 deadline for finalising the 3G policy.