Friday, 20 July 2012

2G array auction: EGoM suggests reduced cost than Trai, Cupboard to take last call



INDIA: The Motivated List of Ministers (EGoM), advancing by Home Reverend P Chidambaram, has made the decision to suggest to the Cupboard a reduced than regulator Trai-proposed source cost for public auction of array.

The reconstituted EGoM, which met for the second time this week, firmed up its opinions on key problems like source cost, array utilization cost and the payment schemes.

The same are "being sent to the Nation Cupboard advancing by Excellent Reverend Manmohan Singh for a decision," Telecommunications Reverend Kapil Sibal said after a two-and-half-hour long conference.

The Telecommunications Regulating Power of Indian (Trai) had recommended a platform cost of Rs 3,622 crore per device of array (MegaHertz) for the public auction of array left from Superior Court closing 122 permits from the then Telecommunications Reverend A Raja in 2008.

This platform cost converted to over Rs 18,000 crore for a pan-India array for new organizations.

"The EGoM mentioned three particular problems... The Motivated List of Ministers are going to make a particular suggestions on each of these problems to Cupboard so that Cupboard chooses on it lastly," Sibal informed correspondents.

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While Sibal rejected to give information, resources aware of the deliberations said the EGoM has made the decision to reduced the Trai recommended platform cost.

Telecom organizations bidding process in the public auction will pay to the govt an yearly fee for using radio, known as array utilization cost, besides the cost at which they buy the array.

The market had been throwing for a 80 % cut in the source cost as they sensed Trai recommended rates would lead to up to 100 % increase in mobile phone expenses.

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