Cabinet approval to reduction of CDMA base price by half

The Union Cabinet has given nod to 50 % reduction in the 800 MHz band (reserve) price which was fixed earlier at Rs 18,200 crore for 5 MHz. Auction for the CDMA radio-waves is expected to begin in March 2013.

What does this mean?

With this cut in the price, existing CDMA operators will have to pay a one-time fee on the revised base price. The existing CDMA operators holding spectrum beyond 2.5 Mhz will be charged at the revised reserve price, effecting from January 1, 2013, till such time as auction determined price becomes available.
However, the move is being opposed by the GSM operators’ body COAI (Cellular Operators Association of India) is of the view that the decision will lead to non-level playing field in the sector and it may approach court in the matter.

Month: Current Affairs - January, 2013