Monday, 16 July 2012

Trai refuses to budge on 2G reserve price - MSN India

Trai refuses to budge on 2G reserve price - MSN India

New Delhi: Rahul Khullar, chairman, Telecom Regulatory Authority of India (Trai), refused to budge on the reserve price for 2G spectrum fixed by his predecessor, which will make it difficult for the government to revise the base price of airwaves considered too high by the telecom industry.

Top government sources have revealed that the ghost of the 2G spectrum scam is weighing too much on decision-makers, who are reluctant to slash the base price of 2G airwaves for the forthcoming auction.

Sources said that the department of telecommunications (DoT) has been asked by the reconstituted Empowered Group of Ministers (EGoM), headed by P. Chidambaram, Home Minister, to explore the possibility of a reserve rate cut for the 2G auction.

DoT has been reportedly told to seek help from the law ministry to avoid any controversy in future given Trai stance ahead of the EGoM meeting on Friday.

Interestingly, DoT had earlier recommended that the price of spectrum should be fixed 17 per cent higher than the reserve price suggested by Trai. Now, with Trai hardening its stand, the government wants a legal clearance before taking decision on revising the price recommended by Trai. Earlier, Trai's recommendations were flouted by telecom minister A. Raja, which led to the 2G scam.



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