What lies in telecom EGoM?

NEW DELHI, INDIA: Rattled over the 2G allocation scandalous doctrines and Supreme Court verdict that quashed 122 licences, the government is not just treading a cautious path, but perhaps is in no hurry to meet August 31 deadline.

As the Presidential Reference into the Feb 2 ruling has been admitted by the top court, the EGoM is likely to take balanced approach and may take another extension, before coming to the final say on reserve price.

TRAI, meanwhile would also submit pricing analysis and its impact on India's 900 million consumer base. The industry bats for a rational decision, while the chances of contradiction over regulator's recommendations, is likely.

The panel, based upon watchdog final version, is all set to decide the fate of the industry. The reserve price, telcos said should be fair and reasonable, and shouldn't be such as proposed by TRAI.

EGoM chairman P Chidambaram wouldn't take any chance, as the Janata Party president Subramanian Swamy together with BJP, is already accusing him of being corrupt.

He is being accused of allegedly allocating 6.2 MHz spectrum at 2001 prices in 2006 together with former telecom minister Dayanidhi Maran. After the exit of two panel chiefs- Pranab Mukherjee and Sharad Pawar, Chidambaram is all set to play a crucial role yet again.

Meanwhile, Rajya Sabha MP and member of the Standing Committee on Urban development Rajeev Chandrashekhar cautions Chidambaram. He believes that without Telecom Commission's say, the matter shouldn’t be decided by EgoM.

In a letter to EGoM chief, Chandrashekhar said that recommendations by TRAI should be taken on board as has been reiterated by former telecom ministers, minister of Law and Justice, Salman Khurshid and Planning Commission deputy chairman Montek Singh Ahluwalia.

Chandrashekhar also expressed concern over the probability of regulator taking U-turn or any significant variation to the proposed base price. He also urged EGoM to uphold the interest of citizens, revenue objectives and statutory authority of the regulator so as to create institutional credibility at a time when the country is facing economic challenges.

Telecom industry body COAI believes that reserve price should be carefully distinguished from the allocation standpoint. "We have been maintaining that level-playing field should be provided so that all bidders can have a fair chance in acquiring spectrum," said COAI director general Rajan S Mathews.

After the meeting:

Roll-out obligations have been finalised. Telcos can mortgage spectrum. However, pricing and one time fee will be taken up in the next EGoM, which is scheduled to happen next week. EGoM is planning to refer some matters, such as reserve price, to the cabinet for a final call.

The government might seek extention of August 31 deadline from the Supreme Court.