Telcos that lost permits may not get chance to bid

Telecom companies whose 2G permits were cancelled by the Supreme Court may not get another chance to bid for spectrum in the next round of auction, according to official sources. Inter-miniterial panel Telecom Commission has accepted the recommendation by a Department of Telecom (DoT) committee to remove the eligibility rule that allowed such companies to participate, the sources said. The DoT committee has suggest that the eligibility condition would require modification with respect to quashed licences as there would be no such licence holder in the next auction. It has suggested that any eligible entity can participate as new entrant or existing licence holder. This view is different from the one given by the Telecom Regulatory Authority of India (Trai) for the third round of spectrum auction. It recommended that "eligibility conditions prescribed in the recently held auctions (November 2012 and March 2013) should be retained for the upcoming auction". The DoT committee has said however that it is "of the view that the eligibility condition would require modification with respect to quashed licencee as there would be no quashed licencee in the next auction. This will have to be suitably incorporated in the NIA". According to sources, Telecom Commission has upheld the views of DoT panel, saying that "Recommendations of DoT's committee may be accepted". TC is expected to take final view on all recommendations of Trai on October 29 which will be then send to Empowered Group of Ministers on spectrum, headed by Finance Minister P Chidambaram, for final decision. In February last year, the Supreme Court had cancelled 122 telecom licences in the 2G spectrum allocation case. They covered 22 licences of Uninor, 21 of Loop Telecom, 21 of Sistema-Shyam, 15 of Etisalat DB, 6 of S Tel, 21 of Videocon, 3 of Tatas and 9 of Idea Cellular. They were able to get benefit of government decision to set-off the amount they paid for impacted permits against final price they had to pay for spectrum in auctions. Uninor, Sistema Shyam, Videocon and Idea Cellular were among those companies that were allowed to adjust the licence fee they paid for quashed licences. Loop Telecom, Etisalat DB, S Tel and Tata Teleservices have so far not participated in auctions. Foreign investor in Loop Telecom, Khaitan Holdings Mauritius Ltd, has filed international arbitration against Indian government seeking damages of about USD 1.5 billion in the matter. Meanwhile, TC has given in-principle approval to spectrum trading recommendation of Trai which would allow telecom firms to take spectrum from other companies.

Trai recommends cut in mobile spectrum floor price

The telecom regulator today recommended sharp cuts in reserve prices for the next round of spectrum auctions after previous efforts at selling the airwaves failed.

The Telecom Regulatory Authority of India (TRAI) also said no spectrum would be reserved for existing players when their licences expire and suggested that airwaves can be traded.

TRAI slashed the combined spectrum auction reserve price in the premium 900 MHz band in the circles of Delhi, Mumbai and Kolkata by about 79 per cent to Rs 650 crore per MHz against Rs 3,074.18 crore per MHz earlier.

The maximum reduction of 81.38 per cent is in the Mumbai circle, where the floor price has been reduced to Rs 262 crore per MHz compared with Rs 1,404.28 crore per MHz of spectrum, as per the regulator's previous recommendation.

It recommended an about 60 per cent cut in the pan-India reserve price for the third round of 2G spectrum (1800 MHz) auctions compared to its previous suggestions.

TRAI has proposed Rs 1,496 crore per megahertz of airwave frequencies in the 1800 Mhz band in a minimum lot of 5 MHz for new players, which comes to Rs 7,480 crore, compared with its earlier suggestion of Rs 18,200 crore.

The government is required to conduct the third round of spectrum auction for 1800 Mhz to comply with a Supreme Court order. The entire spectrum freed from the cancellation of 122 licences in February 2012 in the 2G spectrum allocation case has to be auctioned.

Asked if the reserve price was too high last time, TRAI Chairman Rahul Khullar said, "Yes...please understand the approach has completely changed from the previous pricing regime."

The regulator has suggested a lower reserve price even in service areas where spectrum was sold in November 2012.

When asked about the relief, if any, for telecom service providers that bid in the November auction, Khullar said, "We are only recommending reserve price and it is not the final price. Let market-determined price come through auction then we will decide what to do."

The regulator has denied any reservation of spectrum for existing players Airtel, Vodafoneand Loop Mobile in the auction of 900 Mhz, as proposed by the Empowered Group of Ministers on spectrum, headed by Finance Minister P Chidambaram.

The government has to auction the premium 900 Mhz band being held Airtel, Vodafone and Loop in some circles as their licences expire in the second half of 2014. No priority will be accorded to these licensees, the regulator said.

TRAI has not recommended auction for CDMA spectrum. The regulator has proposed allowing trading of spectrum by those who buy airwaves through auction.

Spectrum row:PAC to examine journalists

Murli Manohar Joshi, who heads parliament's Public Accounts Committee (PAC), said Sunday that the journalists whose names have surfaced in the 2G spectrum scam will have to appear before the panel.

Joshi said that all those whose names were revealed in corporate lobbyist Nira Radia's taped conversations cannot escape from appearing before the PAC.

The Bharatiya Janata Party leader said that the country suffered a huge loss on account of 2G spectrum bungling and everybody was accountable for their conduct.

"Editors and senior journalists who have incriminated themselves in a way on the 2G (spectrum) scam tapes will be summoned by the PAC," Joshi said.

Contacts between some well-known names in the media world and Radia came to the surface after the Income Tax department tapped her telephones.

The scam revolves around the allocation of airwaves in 2008 to mobile companies at below market prices. This caused a loss of crores of rupees to the government.