An empowered group of ministers (EGoM) is likely to take a final decision on Tuesday on the TRAI proposals on the spectrum allocations, which includes the key issue of minimum base price for auction.
There have been conflicting reports on the impact of the increase in the base price for auction on the tariff. While TRAI said it will have minimal impact, several other studies have a different view. According to the research firm Ernst&Young, telecom tariff will go up by 26 paise only if cost of licence and cost of spectrum to be auctioned are taken into account.
The consultancy PricewaterhouseCoopers (PwC) said, telecom tariffs are expected to rise by 90 paise a minute in metros and 20-34 paise on an average across the country if the sector regulator's recommendations on spectrum pricing are accepted. The operators have warned of a 100 percent hike in tariffs if the proposals are accepted.
The GSM operators said the EGoM should take into consideration all the information and views of different groups and analysts to arrive at a decision.
"Our major concern is the reserve pricing recommendation from the sector regulator, which would be a deathknell for the industry. Let the market dynamic decide what the spectrum price should be," said Rajan Mathews, director general of the Cellular Operators Association of India (COAI).
TRAI had recommended, a reserve price of Rs.3,622 crore for 1 Mhz pan-India spectrum, which is around 10 times higher than the price at which 2G licences were allocated in 2008 under then Telecom Minister A. Raja.