Spectrum EGoM decides on auction agenda; no call on pricing

The Empowered Group of Ministers (EGoM) headed by Finance Minister Pranab Mukherjee could not take any decision on the contentious issue of spectrum pricing at its meeting today evening.

Emerging from the meeting, which went on for almost two hours, Law Minister Salman Khurshid said the Telecom Regulatory Authority of India (Trai) did not make any presentation to the EGoM on spectrum pricing.
And sources indicated that the Trai is also yet to submit its analysis on the impact of spectrum pricing on tariffs and viability of telecom operators and this could perhaps be another reason why no decision on pricing was taken today.
According to CNBC-TV18's Siddharth Zarabi, the meeting has decided on which blocks of spectrum to offer and the schedule for the auction also. 
Sources told Zarabi that some eight blocks of spectrum will be auctioned definitely in the first phase of auctions for the 1,800 Mhz band in which some of the operators whose licences were cancelled will also be bidding.
But the crucial decision of spectrum pricing has been deferred. This issues of the reserve price is only going to be settled on or after June 22 because that is now the next likely date for a meeting of the spectrum EGoM. Till then, several other administrative decisions and processes that are concerned with this auction will be taken.
Sources say there will be at least two licenses that will be reborn through this auction. That is the simplest way to put it. Both those licenses will get at least 5 MHz each. Another three individual blocks of 1.25 MHz each will be possibly left for the existing players. Essentially, you are looking at a way out for two of all the cancelled licenses to be reborn post the auction as well as some additional marginal top up spectrum for the existing players. That has been decided.
The liberal use of spectrum is a very key issue in deciding the reserve price. A mixed picture on that but it is clear that the DoT was proposing that liberal use of spectrum be only for future allocations of spectrum. So, spectrum that is already with a company like Bharti or Reliance cannot be used on a liberal basis, which means, there will be no technology restrictions as far as provision of services is concerned.