Keeping in mind the positive growth in Indian economy, TRAI has decided to increase the prices for 3G. The decision has come after TRAI agreed to the Department of Telecommunication’s proposal on doubling the reserve price of 3G Spectrum for a pan India license. TRAI’s decision is based on the recent calculation of India’s GDP growth.

 

DOT in its earlier communication to TRAI had said that the reserve price for a block of 2x5 MHz in the 2.1 GHz band should be 0.5% of GDP which in the case of India would come to $0.5 b. and which according to DOT sources is double the amount that TRAI had assumed earlier. There has been mixed reactions from different sections of telecom world on the issue.

 

CS Rao of WiMax Forum opining on the issue said that the high reserve price would affect the business models to some extent. They would work with TRAI and DoT to get this corrected and make TRAI revise the base price norms. Further he added hat forum is confident that DoT and TRAI would be able to respond to this much needed request