DoT in a fix over 800 MHz spectrum pricing: Sources

The telecom department is caught in a dilemma over conducting auctions for spectrum in 800 mega-hertz bandwidth. Differences amongst various ministries have deterred the Department of Telecommunications (DoT) from taking a final call, reports CNBC-TV18’s Malvika Jain.

Telecom minister Kapil Sibal had indicated that telecom regulator TRAI should review its recommendations on conducting 800 MHz band auction and suggest a reserve price. However, it is not willing to play ball with the DoT. Also read: TRAI sticks to its guns on spectrum reserve price Last week, it suggested that there was no need to conduct auction for CDMA spectrum in view of the fact that according to the regulators’ internal analysis, there is no demand for CDMA spectrum now. The government should consider an alternate route of conducting auctions for E-GSM band of spectrum. Telecom companies particularly want spectrum to be put for auction so that the reserve price is lowered. It is going to have an impact on the one-time fee which companies such as Reliance Communications and Tata Tele will have to pay. However, now the finance ministry and DoT, is also not on the same page on the pricing. These issues are being worked upon and by next week, a final decision in this regard would be taken.