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TRAI begins process of spectrum auction post-2G verdict

The Telecom Regulatory Authority of India (TRAI) released a pre-consultation paper on “Allocation of Spectrum in 2G band in 22 Service Areas by auction” following the Supreme Court of India’s order cancelling 122 2G licenses.

“The Hon’ble Supreme Court of India in its judgment dated [Feb. 2] in the writ petitions no 423/2010 and 10/2010 has directed TRAI to make fresh recommendations for grant of license and allocation of spectrum in 2G band in 22 Service Areas by auction, as was done for allocation of spectrum in 3G band,” Sudhir Gupta, Principal Advisor at TRAI, stated.

The Supreme Court in its landmark verdict on Thursday stated: “The licenses granted to the private respondents on or after [Jan. 10, 2008] pursuant to two press releases issued on [Jan. 10, 2008] and subsequent allocation of spectrum to the licensees are declared illegal and are quashed … . The above direction shall become operative after four months … . Keeping in view the decision taken by the central government in 2011, TRAI shall make fresh recommendations for grant of licence and allocation of spectrum in 2G band in 22 Service Areas by auction, as was done for allocation of spectrum in 3G band.”

According to a news report, an estimated that 536 megahertz of 2G spectrum will be freed following the cancellation of the 122 licenses.

The regulator also stated that it has already recommended in May 2010 that all future licenses should be “unified licenses” and that spectrum be delinked from the license.

“Draft guidelines for unified licensing regime were also placed on TRAI website on [Jan. 16] for comments of the stakeholders,” the regulator stated.

The regulator has requested that all stakeholders send their comments/suggestions on the issues by Feb. 15. It also stated that no extension will be given as the exercise was time bound.

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