Companies & Sectors
TRAI sticks to 700 MHz price, quantum recommendation for auction

The department of telecom had raised doubts over the computation of the reserve price for 700 Mhz band, noting that in a few circles, it is priced lower than 900 MHz

 

India's telecom watchdog, TRAI has maintained its recommendations on 700 MHz spectrum pricing for the upcoming auction as well as on the quantum that will be put on sale, an official statement said on Monday.
 
The Telecom Regulatory Authority of India's response came following the Telecom Commission's query on the pricing and quantum of 700 MHz airwaves to be put for auction in July this year. It had recommended a reserve price of Rs.1,595 crore for 700 MHz in Delhi circle.
 
The department of telecom had raised doubts over the computation of the reserve price for 700 Mhz band, noting that in a few circles, it is priced lower than 900 MHz.
 
The regulator however noted that "the 'bottom-up' approach was used in 800 MHz, 900 MHz, 1800 MHz and 2100 MHz in view of availability of historical information or data and other spectrum bands (700/2300/2500 MHz) where historical information or data are not available, valuation and reserve price has been worked out on the basis of other spectrum bands' reserve prices and outcome of the auctions held in the past".
 
"However, in the case of 700 MHz band which is being auctioned for the first time, the authority did not have any historical data - financial as well as non-financial relating to this band. There is no denying the fact that technical propagation characteristic-wise 700 MHz is nearer to 800 and 900 MHz band than 1800 MHz band," it added.
 
"Moreover, it is also a fact that as per international trends 700 MHz band will be primarily used for LTE technology and presently 1800 MHz is the most deployed band for LTE technology. Therefore, the authority has decided to benchmark the reserve price of 700 MHz with reference to 1800 MHz band and not 800 or 900 MHz band."
 
"The authority (TRAI) therefore reiterates its recommendation on reserve price for 700 MHz band."
 
It noted that even if it is assumed that greater revenue can be generated by auctioning a part of spectrum in 700 MHz band in future, "deferring the revenue receipts now may not be of economic prudence keeping in view the impact of telecom services on the other sectors and overall GDP growth".
 
Spectrum being a scarce resource, auction of spectrum is primarily to solve the allocative problem in an open, transparent manner and "revenue maximization cannot be (and should not be) the only objective of auction where the government is an auctioneer", it said, adding that the government has to a strike a balance between its fiscal targets and its responsibility to promote and encourage growth of the telecom sector.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Non-bailable arrest warrant issued against Mallya
Mumbai : A special court here on Monday issued a non-bailable arrest warrant against liquor baron Vijay Mallya, official sources said.
 
On April 15, the Enforcement Directorate had moved the special court handling cases under the Prevention of Money Laundering Act, seeking the warrant against Mallya who is currently outside India.
 
On at least three occasions, Mallya failed to honour ED summons for questioning in various cases pertaining to his loans of over Rs.9,000 crore and allegations of money laundering.
 
After he failed to appear in person on March 18, April 2 and April 9, he sought time till May to come to the ED, as he is abroad since March 2.
 
The ED move came soon after the central government suspended Mallya's diplomatic passport on April 15.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Jio consortium announces 8,100-km, multi-nation cable system
Mumbai : A global consortium with Reliance Jio as a key member on Monday announced the launch of a 8,100-km, 100 GBPS fibre optic communications cable system, inking East Asia and West Asia, with a landing at Chennai. It can also connect with other systems for a global reach.
 
"Linking Malaysia and Singapore with Oman and the UAE, with branches to India and Sri Lanka, the cable provides ample diversity to South East Asia, India, Middle East and European routes," the consortium said in a statement.
 
The cost of the project was not divulged.
 
In addition to Reliance Jio, the partners in the Bay of Bengal Gateway, as the cable network is called, include: Dialog Axiata, Etisalat, Omantel, Telecom Malaysia, and Vodafone. The Indian company Reliance Jio has invested in the system as part of its broadband plans.
 
"This brings key global content hubs closer to our customers, delivering much richer experience as an important part of driving India's broadband adoption and enabling consumers to shift away from the current high-cost low value propositions," Jio president Mathew Oommen said.
 
The Indian company owns and operates the strategically important undersea cable landing facility in Chennai, providing high-speed, high-capacity, low latency route to connect the subcontinent with the rest of the world.
 
The Bay of Bengal Gateway has deployed the latest submarine cable transmission technology with an initial capacity of 9 terabits per second and a design capacity that can take it up to as much as 55 terabits per second, the consortium said.
 
The network can also be used to interconnect with existing land and undersea cables at Oman and the UAE for Europe, Middle East and Africa -- and similarly at Malaysia and Singapore for Far East Asia, all the way to the US. 
 
It also promises enhanced reliability as the marine route design is such that it avoids the busy and crowded Malacca Straits and other cable-cut prone areas with diverse terrestrial connection directly to two gateways in Singapore, the consortium said.
 
Among those who can benefit from the system are carriers seeking cost-effective ways for global connectivity, large corporates with high bandwidth requirements in the region such as financial institutions and IT providers, as also others seeking route-diversity for reliability.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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