September 9, 2013 6:40 PM

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Telecom Regulatory Authority of India (TRAI) today recommended 60 to 80 per cent cut in the floor price of mobile phone airwaves for an upcoming auction. It has suggested a pan-India reserve price of 1,496 crore rupees per MHz in the 1800 band, down from the base price of 3,640 crore rupees in the previous auction. In the 900 MHz band, it recommended a reserve price of 288 crore rupees per MHz for Delhi, 262 crore rupees for Mumbai and 100 crore rupees for Kolkata. In its suggestions, the TRAI said spectrum trading should be permitted and there should be no reservation of spectrum for renewal of licenses. It also said all bidders should be treated alike and no priority should be accorded to licensees seeking renewal in the bidding process.The Telecom regulator has recommended that the Department of Telecom should come out with a clear roadmap indicating the quantum of spectrum which will be available in future along with time lines before the upcoming auction. It said that the eligibility conditions prescribed in the recently held auctions should be retained. Meanwhile, Telecom Minister Kapil Sibal said the recommendations are reasonable and in recognition of market realities.

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