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The spectrum-pricing muddle: why TRAI must amend its reserve-price methodology in upcoming auctions

Instead of high base prices linked to previous auctions, it may be wiser to let the bidders compete and discover the market value of spectrum. It’s an approach finding favour in countries across the globe.
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rishitejpal
19 Aug 2019 12 Mins Read 1 comments
BCCL
It’s not clear yet when the government will push ahead with the next round of spectrum auctions. Pricing continues to be a prickly issue, and it will decide the game plan of telecom companies. It’s wait and watch for the operators. A methodology adopted by the Telecom Regulatory Authority of India (TRAI) to determine the reserve price of
active participation by telcos. The government must sort out regulatory and policy issues — such as spectrum-usage charges, licence fees, universal service obligation (USO) fund, and settlement of the adjusted gross revenue (AGR) debate — and focus on financial stability of telcos. This will ensure an active participation in auctions by telcos, leading to a smooth transition to next-gen technologies.
It’s not clear yet when the government will push ahead with the next round of spectrum auctions. Pricing continues to be a prickly issue, and it will decide the game plan of telecom companies. It’s wait and watch for the operators. A methodology adopted by the Telecom Regulatory Authority of India (TRAI) to determine the reserve price of active participation by telcos. The government must sort out regulatory and policy issues — such as spectrum-usage charges, licence fees, universal service obligation (USO) fund, and settlement of the adjusted gross revenue (AGR) debate — and focus on financial stability of telcos. This will ensure an active participation in auctions by telcos, leading to a smooth transition to next-gen technologies.

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