"TRAI's recommendations on the 2G auction reserve price cannot be looked at in isolation," says Union telecom secretary R Chandrashekhar. However, he added that it was indicated earlier that the final 3G auction price would be the reserve price for future auctions, reports CNBC-TV18's Siddharth Zarabi.
"I think at this stage it would be premature for me to comment on the reserve price just 48 hours after we received the recommendations," Chandrashekhar explained. Also read: New EGoM on 2G likely in next 10 days
The recommendations will analysed by the ministry and then sent to TRAI with preliminary observations and clarifications for TRAI to release its final recommendations based on which the ministry will then take a decision.
The telecom secretary reiterated that the reserve price was to be viewed in consideration of other factors such as significant reduction in the spectrum usage charges from the current levels of 3-8% to 1%. "We need to take into account the liberalisation of the spectrum which allows the user to derive all benefit over a 20-year period. That can be very significant when you try to compare the technology which existed 20 years earlier and today." Also read: 2G auction deadline may get tough for govt: Sources
The ministry is to also focus on the payment terms. According to the TRAI recommendations only one third of the payment is to be made upfront followed by a moratorium of two years and then resumption of payments over a period of 10 years
On linking the 2G spectrum to the 3G yield price and not just the reserve price, Chandrashekhar explained that when the auction was conducted in 2010, it was indicated that the final result in price would actually be the floor price for a future auction.
Throwing light on the possible timeline, he said, "We have just received the TRAI recommendations. In the normal course, these recommendations take up to a month for us to consider, take to the telecom commission, form our views and then go to the empowered group of ministers. We are trying to do that within the original deadline of May 2 after which we hope to receive TRAI final recommendations before the May 11." Also read: Will do our best to abide by SC verdict: Telecom secy Also watch the accompanying video
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