TRAI finally releases 800 MHz consultation paper

The Telecom Regulatory Authority of India (TRAI) has finally released consultation paper on 800 MHz and has asked all stakeholders to give comments by 15th January, 2014 and counter comments by 22nd January, 2014. The open house discussion for 800 MHz has been fixed on 27th January, 2014.

The 800 MHz consultation paper focuses on: Quantum of spectrum in the 800 MHz band that should be put up for auction; Block size in the 800 MHz band; Value of 800 MHz spectrum be derived on the basis of the value of 1800 MHz spectrum using technical efficiency factors as discussed above; Any case for application of a lower efficiency factor (1.3) over the valuation of 1800 MHz spectrum, for determining the valuation of 800 MHz, as was done in the previous auction; and Should the value to be paid for 800 MHz spectrum be based upon the potential growth in data services.

The regulator will also deliberate on: Should the value of spectrum in the 800 MHz band be assessed on the basis of producer surplus on account of additional spectrum; Should the value of spectrum in the LSAs in India for 800 MHz be determined by utilizing the data on international prices and what other variables do you suggest for arriving at robust value estimates using the multiple regression approach.

The consultation paper also focuses on alternate approaches for valuation of spectrum in 800 MHz and what should be the ratio adopted between the reserve price for the auction and the valuation of the spectrum and would it be optimal to fix reserve price equal to valuation of spectrum?

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