Spectrum price revision may add to mobile tariffs

The Telecom Regulatory Authority of India (TRAI), has according to a report in the Times of India sought for a jump in the prices of the 2G spectrum by a massive six times. Needless to say, this may further push the prices of the mobile tariffs in the country, as the mobile service providers in the country would be at the receiving end of this move. The report further suggests that TRAI had earlier in the year, stated that the price paid by the operators (Rs.1,658 crores) towards 6.2 Mhz spectrum for pan-India licence, should be upped to Rs.10,972.45 crores). These events unfold just when the Department of Telecommunications (DoT) is scrambling to make final changes to the National Telecom Policy 2011. 

Higher tariffs? (Image credit: Getty images)

Furtheron, it is being learnt that, for each spectrum beyond the 6.2 Mhz limit, a cost of Rs. 4,571.87 crores (one-time cost) would have to be borne by the operators. This price, TRAI adds would vary from circle to circle, and an operator would be expected to pay this amount in the circle it holds additional spectrum in.