TRAI To Suggest 3G Fee Of Rs 425 Crore Per Circle Per Operator

The Economic Times: Telecom regulator TRAI plans to suggest auctioning of 3G spectrum , which may cost operators a huge Rs 10,000 crore for a nationwide rollout – or some Rs 425 crore per circle (about $90 million) per operator (there are 23 circles in India).
At an industry-regulator meeting today with the industry, TRAI took up the European model, which comes to Rs 85 crore per Mega Hertz per service area, and suggested implementing a similar model in India.
A minimum 5 Mhz of spectrum is to be allocated to each operator, which means the cost per operator psa to avail this much spectrum will be about Rs 425 crore per service area.
But this can affect the fledgling mobile content business. Mobile broadband services like high speed internet, video, video streaming, and audio all depend on 3G. Auctioning of spectrum would mean these services would turn out be expensive.

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