Govt to reform spectrum pricing, auction to be held within this fiscal

The Indian government is undertaking a reform of pricing of spectrum, said telecom and IT minister Ravi Shankar Prasad at the India Mobile Congress Monday, addressing concerns of the telecom industry which has often termed the prices exorbitant and unsustainable.

The minister, who also handles the portfolios of law and justice, added that the next spectrum auctions will be held within this financial year.

“We are alive to the sector’s concerns. We are working on it…We’re putting in place a process for reforming the pricing (of spectrum),” Prasad said. The statement came in response to carriers including Reliance Jio and Bharti Airtel, who at the conference raised issue sof high reserve prices of spectrum, including 5G, which will be auctioned for the first time in India.

“Spectrum auction will be done in this financial year…. The date will be announced soon,” Prasad added. The government has been wanting to hold the next auction within this calendar year, but has now pushed the time line back. Base prices of spectrum, including 5G, and the quantum are yet to be finalised.

The industry has raised more issues, specifically that of right of way which is most critical to lay down fibre that will take broadband to consumers’ homes. Rakesh Bharti Mittal said that the state governments and municipalities were using this as an income source, despite the national rule to allow right of way already in place.

Prasad said that the department understood the challenges and would work with the state governments to resolve it.

“Understand the challenges in right of way… I will call a meeting of IT and local government ministers, to resolve (this issue)… I will also write to the chief ministers,” he said.