Lok Sabha Question No. 4067 (UNSTARRED), answered on 2016-08-10
Subject: Impact of High Spectrum Price on Mobile Tariff
Ministry: COMMUNICATIONS
Asked by: JYOTIRADITYA MADHAVRAO SCINDIA, KAMAL NATH

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF TELECOMMUNICATIONS

## LOK SABHA UNSTARRED QUESTION NO.4067 TO BE ANSWERED ON 10 TH   AUGUST, 2016

## IMPACT OF HIGH SPECTRUM PRICE ON MOBILE TARIFF

4067.  SHRI JYOTIRADITYA M. SCINDIA: SHRI KAMAL NATH:

Will the Minister of COMMUNICATIONS be pleased to state:

- (a) whether the reserve price for telecom spectrum auction fixed by the Government is too high which can result into hike in tariffs by various telecom companies;
- (b) if so, the details thereof; and
- (c) the measures taken by the Government to ensure that the high cost of spectrum price do not have cascading effect on mobile tariff?

## ANSWER

## THE MINISTER OF STATE (IC) OF THE MINISTRY OF COMMUNICATIONS & MINISTER OF STATE IN THE MINISTRY OF RAILWAYS (SHRI MANOJ SINHA)

- (a) & (b) Telecom  Regulatory  Authority  of  India  (TRAI),  having  taken  into  account  the comments of various stakeholders received during consultation process, released its recommendation on 'Valuation and Reserve Price of Spectrum in 700, 800, 900, 1800, 2100, 2300  and  2500  MHz  bands'  dated  27.1.2016  and  subsequent  response  dated  18.4.2016  on back  reference  by  the  Government.    The  Government,  after  considering  the  above  TRAI recommendations, has decided the reserve price for 700, 800, 900, 1800, 2100, 2300 and 2500 MHz bands. A detail of spectrum bands and their reserve price is at Annexure-I.
- (c) It is expected that competition in the telecom sector may force operators not to increase the tariffs.

## Annexure-I Reserve Price for Auction of Spectrum in Various Bands

## Rupees in Crores per MHz

|                             | Paired   | Paired   | Paired   | Paired    | Paired    | Unpaired   | Unpaired   |
|-----------------------------|----------|----------|----------|-----------|-----------|------------|------------|
| Licensed Service area (LSA) | 700 MHz  | 800 MHz  | 900 MHz  | 180 0 MHz | 210 0 MHz | 230 0 MHz  | 2500 MHz   |
| Delhi                       | 1595     | 848      |          | 399       | 554       | 143        | 143        |
| Mumbai                      | 1192     | 727      |          | 298       | 461       | 146        | 146        |
| Kolkata                     | 596      | 160      |          | 149       | 116       | 33         | 33         |
| Andhra Pradesh              | 971      | 606      |          | 243       | 272       | 68         | 68         |
| Gujarat                     | 952      | 285      | 673      | 238       | 258       | 39         | 39         |
| Karnataka                   | 740      | 303      | 558      | 185       | 328       | 98         | 98         |
| Maharashtra                 | 1272     | 799      |          | 318       | 341       | 58         | 58         |
| Tamilnadu                   | 900      | 360      |          | 225       | 344       | 132        | 132        |
| Haryana                     | 186      | 57       | 151      | 47        | 55        | 8          | 8          |
| Kerala                      | 334      | 243      |          | 83        | 177       | 16         | 16         |
| Madhya Pradesh              | 331      | 408      |          | 83        | 123       | 8          | 8          |
| Punjab                      | 308      | 119      |          | 77        | 91        | 21         | 21         |
| Rajasthan                   | 364      | 204      |          | 91        | 140       | 6          | 6          |
| U. P. (East)                | 459      | 219      | 776      | 115       | 110       | 9          | 9          |
| U.P. (West)                 | 384      | 182      | 739      | 96        | 111       | 12         | 12         |
| West Bengal                 | 183      | 82       |          | 46        | 52        | 5          | 5          |
| Assam                       | 158      |          |          | 40        | 46        | 2          | 2          |
| Bihar                       | 248      | 136      | 444      | 62        | 86        | 6          | 6          |
| Himachal Pradesh            | 64       | 24       |          | 16        | 20        | 1          | 1          |
| Jammu & Kashmir             | 52       |          |          | 13        | 11        | 1          | 1          |
| North East                  | 44       |          |          | 11        | 12        | 1          | 1          |
| Orissa                      | 152      | 57       |          | 38        | 38        | 4          | 4          |

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