TRAI recommends spectrum pricing changes for next auction

New Delhi : The Telecom Regulatory Authority of India (TRAI) on Wednesday recommended rules and changes in the prices for the next round of spectrum auction.

The regulations were formulated on the basis of inputs from stakeholders and further analysis, a TRAI statement said.

For the auction of 800, 900, 1800 and 2100 megahertz, the reserve price should be "higher of the two figures -- 80 per cent of the average valuation of spectrum band in the LSA (local service area) or the price realised in the October 2016 auction (duly indexed)", it said.

Regarding the above mentioned spectrum bands it further said in the "local service areas" where no spectrum was offered in October 2016 auctions, reserve price should be 80 per cent of average valuation.

Further, "the authority recommends that reserve price of 700 megahertz band should be equal to 2 times of reserve price of 1800 megahertz spectrum band," as per the statement.

The regulator also recommended that the reserve price for northeast and Jammu and Kashmir "local service areas" in 800, 900, 1800 and 2100 megahertz bands may be fixed at a discount of 50 per cent on the reserve price.

"The discount in northeast and Jammu and Kashmir LSAs will also be given while arriving at reserve prices of other spectrum bands."

The government has not yet declared the timing for the next spectrum auction.