Yashwant Sinha writes to PM, asks him to reject TRAI recommendations

SinhaSenior BJP leader Yashwant Sinha. (PTI)

Expressing dismay at the new reserve price of spectrum set by TRAI, BJP on Tuesday said the steep reduction in costs will benefit a few operators and cause a loss to the exchequer and demanded that Prime Minister ask his office to reject the TRAI recommendations.

Senior BJP leader Yashwant Sinha has written a letter to Prime Minister Manmohan Singh, saying he is appalled and dismayed at the recommendations of TRAI. He has said that the proposed steep reduction in spectrum reserve price and Spectrum Usage Charges (SUC) will favour few operators at the cost of national exchequer.

Sinha has pointed out that TRAI has reduced the price of 1 MHz of spectrum pan-India by 37 per cent, and the reduction is much steeper for key circles like Mumbai and Delhi at 50 per cent.

"With these reserve prices and the amount of spectrum intended to be auctioned in the forthcoming auction, the potential loss to the government can be as high as Rs 35,000 Crore," Sinha said in his letter.

The former Finance Minister noted that these recommendations of TRAI contradict its own arguments. Last year, TRAI had defended and justified the reserve price of Rs 3,622 Crore for pan-India 1 MHz spectrum in 1800 MHz band. It had also insisted that impact of recommended reserve price on telecom tariff to subscribers will be negligible, Sinha added.

"I fail to understand why the same body now has junked its own recommendations within one year and has recommended such a steep reduction in the reserve price. This is not expected from a sector specialist regulator," Sinha said.

BJP did not buy TRAI's argument that steep reduction has been done for forthcoming auctions as the auctions held in November, 2012 and March, 2013 had been failures.

... contd.

Please read our terms of use before posting comments
TERMS OF USE: The views, opinions and comments posted are your, and are not endorsed by this website. You shall be solely responsible for the comment posted here. The website reserves the right to delete, reject, or otherwise remove any views, opinions and comments posted or part thereof. You shall ensure that the comment is not inflammatory, abusive, derogatory, defamatory &/or obscene, or contain pornographic matter and/or does not constitute hate mail, or violate privacy of any person (s) or breach confidentiality or otherwise is illegal, immoral or contrary to public policy. Nor should it contain anything infringing copyright &/or intellectual property rights of any person(s).
comments powered by Disqus