Rajeev Chandrasekhar's official website - Member of Parliament

GOVERNMENT OF INDIA

Ministry of Communications and Information Technology

DEPARTMENT OF TELECOMMUNICATIONS

RAJYA SABHA
UNSTARRED QUESTION NO. 1200
TO BE ANSWERED ON 5TH AUGUST, 2010
2G SPECTRUM at 3G PRICES

 

1200. SHRI RAJEEV CHANDRASEKHAR

Will the Minister of COMMUNICATIONS AND INFORMATION TECHNOLOGY be pleased to state:

(a)    Whether Government is aware that based on TRAI recommendations, dated 11 May, 2010, by benchmarking 2G spectrum at 3G prices, the loss to the exchequer would be upwards of Rs. 1 lakh crore on account of allocation of 2G spectrum of first come first served basis, from the 122 new licenses issued in January, 2008 and crossover technology licenses, etc.

(b)   If so, in what manner Government proposes to recover these losses.

(c)    Whether Government has made a reference to TRAI to determine the real value of the startup spectrum associated with the above licenses, and

(d)   If so, the details thereof?

ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF COMMUNICATIONS AND INFORMATION TECHNOLOGY (SHRI SACHIN PILOT)

(a)    To (d) Sir, on 7th July, 2009, Government had sought the recommendations of Telecom Regulatory Authority of India (TRAI) no the Report dated 13th May, 2009 of the Committee for
Allocation of Access (GSM/CDMA) Spectrum and Pricing” Thereafter, the TRAI submitted its recommendations dated 11.05.2010 on “Spectrum Management and Licensing Framework” to the Government wherein it has inter- alia recommended that spectrum in the 800,900 and 1800 MHz bands (Presently 2G spectrum) should not be subject to auction. Spectrum in 800 and 900 MHz shall however may be subject to auction as and when it is reformed for 3G and other future technologies. All the service providers having spectrum beyond the contracted quantum (6.2 MHz/ 5 MHz in respect of GSM/ CDMA respectively) should pay excess spectrum charges at the ‘Current Price’ which is equal to 3G price in 1800 MHz band. Thereafter, the TRAI, on 18.05.2010, has informed the Government to await its further recommendations in the matter.

As the TRAI has not recommended charging of startup spectrum contracted spectrum associated with the Unified Access Service (UAS) licenses/ permission for usage of dual technology spectrum at the rate of 3G prices, there is no question of any presumptive loss to the exchequer.