TRAI Calling for Global Comments on Telecom Reforms in India

After the 2G Spectrum Scam in India, the TRAI and DoT do not want to take any chance though officials lust for corrupt money making is not fully wiped out in the two offices. However, TRAI has called for Paper inviting expert comments form various Indians globally to push forward the Telecom Reforms.

Natural resource allocation issue raised by the Supreme Court
Q1. How can the various principles outlined by the Hon’ble Supreme Court in various observations brought out in para above be sufficiently incorporated in the design of spectrum auction?
Q2. What are the key objectives to be kept in mind in the auction of the spectrum?

Quantum of spectrum to be auctioned
Q3 What should be the amount of spectrum which should be auctioned?

Liberalisation of spectrum
Q4 Should the spectrum be liberalised before it is put to auction?

Spectrum refarming
Q5. For the refarming of 800 and 900 MHz bands from the existing licensees, which of the three options given above should be adopted? Please elaborate with full justification.
Q6. What are the issues that may arise in the above mentioned refarming process?
Q7. For new technologies e.g. UMTS/LTE, 5 MHz is the minimum amount of spectrum required. Certain licensees have only 4.4 MHz spectrum in 900 MHz band and 2.5 MHz spectrum in 800 MHz band. What are the possible options in case of such licensees?
Q8. Some GSM spectrum allocations may be interleaved between operators; to avoid fragmentation, reconfiguration between operators may be required. Whether frequency reconfiguration is required and what are the challenges and possible solutions?
Q9. Should the refarming of spectrum in 800/900 MHz bands be dealt independently or should a comprehensive approach be adopted linking it with the availability and auctioning of 700 MHz band?

700 MHz band
Q10. Which of the two approaches outlined above be adopted?
Q11. When should 700 MHz spectrum be auctioned?
Q12. Should the auction in 700 MHz band be linked with the granting permission for the liberalised use of 800/900 MHz band?
Q13. How much spectrum in 700 MHz band should be put to auction initially and what should be the amount of spectrum which a licensee should be allowed to win in that auction?

Structure of auction
Q14. What should be the structure of the auction process?
Q15. Should auction be held in single stage or multi stage?
Q16. Should there be a simultaneous auction for spectrum in 800 and 1800 MHz bands?

Block Size of Spectrum
Q17. What should be the block size of the spectrum?
Q18. Should the block size be dependent on the frequency? If so, what should be the block size in each band?
Q19. Should there be a cap on amount of spectrum one can bid? If so, what should it be?
Q20. Should there be a separate cap on the total amount of spectrum one can hold; if so, what amount should it be?
Q21. Should there be a cap on the amount of spectrum one can hold in respect of sub-GHz spectrum? If so, what should it be?

Eligibility criteria
Q22. Who all should be eligible to participate in the auction?
e. Only licensees whose licences have been cancelled;
f. Only eligible applicants as on 10.01.2008;
g. Only licensees whose licences have been cancelled and all new eligible entrants at the time of auction; or
h. Open to all including the existing Licensees.

Reserve price
Q23. What should be reserve price per MHz of spectrum in the year 2012 for 1800 MHz band?
Q24. What should be the reserve price per MHz of spectrum in the 700/800/900 MHz bands.
Q25. Whether the reserve price should be uniform across the country or service area wise?

Roll out obligations
Q26 What should be the roll out obligations linked to the auctioned spectrum?

Spectrum usage charges
Q27. What should be the annual spectrum usage charge for the spectrum being auctioned?
Q28. Should the spectrum usage charge be in line with present criteria of escalating charge with the amount of spectrum holding or a fix percentage as was done for 3G and BWA spectrum?

Validity of spectrum
Q29. What should be the period of validity of spectrum?
Q30. What should be the period of price of spectrum?
Q31. Should the government allow deferred payment schedule of the spectrum auction fee, or should the payment be upfront in nature?

Spectrum trading
Q32. Should Spectrum trading be allowed in India?
Q33. (a) Among the various models discussed above, in your opinion which model of spectrum trading is best suited for India?
(b) In your opinion is there any other model which can be implemented in India? If yes, please describe.
Q34. What should be the eligibility criteria to trade the spectrum?
Q35 Whether the spectrum assigned for 3G and BWA services be allowed to trade? If yes, give reasons.

Spectrum for Financing
Q36 Can spectrum be allowed to be mortgaged for raising capital for telecom purposes?

You can also post your views on TRAI’s Discussion Forum.

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