The reserve price fixed has come as a disappointment for the telecom industry which had been pitching for a 80% cut in the reserve price suggested by TRAI, which they felt would lead to up to 100% hike in mobile telephone charges
New Delhi: The Cabinet on Friday fixed a minimum or base price of Rs14,000 crore for the Supreme Court mandated auction of telecom spectrum, reports PTI.
The Cabinet, headed by Prime Minister Manmohan Singh, decided to fix the reserve price at the lower end of the Rs14,000 crore to Rs15,000 crore band that was recommended by an Empowered Group of Minister (EGoM), official sources said.
The EGoM had suggested a reserve price at Rs14,000-Rs15,000 crore for 5 Mhz of airwaves as against around Rs 18,000 crore recommended by sectoral regulator Telecom Regulatory Authority of India (TRAI) for the auction of spectrum vacated from cancellation of 122 licences by Supreme Court.
Sources said the Cabinet approved levy of annual spectrum usage charge of 3% to 8% on different slabs of revenue as was recommended by the EGoM headed by P Chidambaram.
Chidambaram has been made the Finance Minister in a minor Cabinet reshuffle early this week.
The apex court had in February this year cancelled 122 licences issued by the then Telecom Minister A Raja in 2008 and asked the government to conduct fresh auctions by 31st August. But this deadline may not be met and the government may approach the apex court for extension of the timeline.
The reserve price fixed would be a disappointment for the telecom industry which had been pitching for a 80% cut in the reserve price suggested by TRAI which they felt would lead to up to 100% hike in mobile telephone charges.
The auction is crucial for companies like Uninor and Sistema Shyam Teleservices, who have time till 7th September to offer their services after which they will be forced to close down their operations in case they fail to get a licence
Earlier, the EGoM, headed by P Chidambaram, has suggested a 20% lower base or reserve price at Rs14,000-Rs15,000 crore for 5 Mhz of airwaves as against around Rs18,000 crore recommended by sectoral regulator TRAI for the auction of spectrum vacated after the Supreme Court order.
The telecom industry has been pitching for a 80% cut in the reserve price as they feel TRAI recommended rates would lead to up to 100% hike in mobile telephone charges.
Deputy Chairman of the Planning Commission said the if we do not increase diesel prices, there would be other consequences like the grid collapse
Aegon Religare’s iHealth is a good surgical benefit plan competing with LIC’s Jeevan Arogya and ICICI Pru Life’s Hospital Care II. Should you go for it?
Aegon Religare’s iHealth is a new entrant online health product from a life insurance company. It is a fixed-benefit product offering daily hospitalisation cash, surgical cash benefit and critical illness cover. It competes with LIC’s Jeevan Arogya and ICICI Pru Life’s Hospital Care II. Mediclaim customers who feel cheated by the insurer/TPA making deductions in claims payment may be attracted to this fixed-benefit option.
While the main advantage with mediclaim is that it covers any hospitalisation, surgical benefit plan will pay only for surgeries and the amount of payment will vary as per a pre-defined table. Surgical benefit plans are a good option and can work along with mediclaim. You can get payment from both—the mediclaim policy as well as fixed-benefit plan.
Aegon Religare’s iHealth covers 849 surgeries which are classified under six categories. The surgeries falling in category-1 are paid up to the sum insured; the benefits are the least for category-6 surgeries, which is any surgery not in the list of 849 surgeries. The sum insured under the silver, gold, diamond and platinum plans are Rs2 lakh, Rs3 lakh, Rs4 lakh and Rs5 lakh respectively. The exit age is 85 years; it is 75 years for critical illness cover. Some procedures could have two-year waiting period. The default is 90 days waiting for non-accident ailments.
Positives of Aegon Religare iHealth:
Negatives of Aegon Religare iHealth:
While analyzing the surgical benefit products, there is a need to check the benefit paid for each procedure. All the products give classification of category for each procedure and have a pre-defined benefit for each category. Unfortunately, common man cannot understand all medical procedures and their intricacies and hence may be under impression that the product he purchases will cover the surgery and pay properly. If the surgery is assigned a low category or is not in the list (default is lowest category), the policy will pay peanuts and will defeat the purpose of taking health insurance. Mediclaim is a safe option even with its fine prints.
Check if each procedure has broader definition and not too restrictive. Example – All the three insurance products assign highest category for Coronary Artery Bypass Graft (CABG). Aegon Religare iHealth and ICICI Pru Life Hospital Care II pays full sum insured for it (broad definition); LIC Jeevan Arogya will also pay 100% only if two or more arteries are bypassed via open chest surgery (restrictive wordings).
Source – Moneylife research. If procedure is not listed, it will be considered lowest category and paid accordingly. Surgical product benefits and other benefits like hospital cash, etc will vary.