Unauctioned spectrum okayed at Trai price

New Delhi: The Cabinet on Wednesday cleared the liberalisation of spectrum — allocated without auction to telecom companies — at Trai recommended price with the balance being collected after deriving market rate through bidding.

The Cabinet chaired by Prime Minister Narendra Modi approved the modifications in the policy for liberalisation of administratively allotted spectrum where market determined prices were not available. This will facilitate optimal utilisation of spectrum by introducing new technologies, sharing and trading of spectrum.

The Cabinet decision will enable Reliance Communications to liberalise its spectrum in four telecom circles, where auction determined price is not available, for Rs 1,300 crore. “The meaning of this Cabinet decision is that wherever administratively allocated spectrum is available, whose liberalisation is sought and whose market determined price is not available, then in that case, Trai’s recommendation on auction for price shall be taken as provisional standard and after actual auction, the balance will be taken,” telecom minister Ravi Shankar Prasad said.

A liberalised spectrum allows telcos to use any technology to deliver mobile services like 3G and 4G and allow them to introduce new technologies.