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May 08, 2012, 08.45 AM IST | Source: CNBC-TV18

Telcos write to Sibal against TRAI recos

Five telecom companies, Bharti, Vodafone, Idea, Uninor, and Videocon have come together against TRAI's 2G spectrum auction proposals. They have jointly written to the telecom minister Kapil Sibal asking for slashing of reserve price by 80%, reports Malvika Jain of CNBC-TV18.

Five telecom companies, Bharti, Vodafone, Idea, Uninor, and Videocon have come together against TRAI's 2G spectrum auction proposals. They have jointly written to the telecom minister Kapil Sibal asking for slashing of reserve price by 80%, reports Malvika Jain of CNBC-TV18.

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This is the first time that the telecom companies have spelt out what they want. TRAI had recommended a spectrum price of Rs 18,000 crore for 1800 Mhz band. Eighty percent reduction in reserve price comes to Rs 3,600 crore which is the reserve price for 3G spectrum and not the final price for 3G spectrum. 

These companies said that Rs 3,600 crore should be the reserve price for 2G auction also. These companies also feel that if higher spectrum price is imposed then they will be unable to meet the rollout obligations, which may lead to higher tariffs by 25-30%.

CEOs of these telecom companies have also completely rejected the re-farming recommendations of the TRAI. They feel that these recommendations will lead to network disruptions. They also suggested that all spectrums should be auctioned and rollout obligations for the auctioned spectrum should be scraped.

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