TMCnet News
DoT to send note on 3G auction to Cab Sec by TuesdayNew Delhi, Dec 21, 2008 (Asia Pulse Data Source via COMTEX) -- The Department of Telecom will send a note by Tuesday on higher annual 3G spectrum charges and number of blocks to be auctioned to the Cabinet Secretariat for a possible discussion in the Cabinet Committee on Economic Affairs. A senior official of the DoT said that the decision was taken at the Telecom Commission meeting on Friday (December 19) to "bring it to the notice of the CCEA" and this is being done as a measure of precaution seeing the allegations in the 2G licence and spectrum allocation case. By Tuesday, the note from the DoT should go for a possible discussion in CCEA whenever it takes place, the official said, adding that the Cabinet, however, is the final authority to decide whether this is a pure departmental matter or it should be put on the agenda of CCEA. The official said that 3G spectrum auction though is a pure telecom issue, Minister A Raja wants CCEA to take it up for a larger participation of the member ministries. The official said that the document also points to the Commissions' decision to reject the TRAI's suggestion on 2 per cent (of the highest 3G auction bid in a circle) on the premise that it will lower the bid amount by the players. The CCEA note also focuses on the DoT's proposal of maximum five 3G players in a circle including one PSU player. The Telecom Commission on last Friday rejected TRAI's proposal of keeping the option open for more number of players in future as and when more spectrum is released. Earlier this month, the TRAI had approved a government proposal to increase the annual spectrum charges for 'stand-alone' 3G operators to 3 per cent of their revenue. As per the new formula, 2G operators, who also become 3G players, will have to pay 3-8 per cent depending on the level of spectrum they have. This matter has also been included in the note of the DoT to CCEA For the auctioning of 3G spectrum, which is scheduled for January 16, the DoT will hold the pre-bid conference on December 23 and will start receiving applications from December 26. The pan-India reserve price for 3G spectrum is Rs 2,020 crore. |