Mobile Tariffs May Go Up With Rise In Spectrum Price: COAI

"If reaching out an affordable service to the last man is the objective then there has to be a reasonable compromise between the money industry has to pay for the airwaves to the Government," Assocham said in a statement.

It added that government is pressing the Trai to raise the reserve price despite the bitter experience in past which is bound to disturb success of the Indian telecom industry that was able to offer the cheapest service to the people.

Government also has plans to auction 3G spectrum in upcoming auction and is working to determine it base price.

"On the 2.1GHz auction for 3G, the latest development is that the independent regulator had suggested a reserve price of 2,720 crores per MHz but the DoT claimed it should be 3,999 crores per MHz based on inflation indexing of what was received at the last auction and other considerations," Assocham said.

Both the bodies expressed concern over only 5MHz of 3G spectrum being put for auction compared to 20MHz being demanded by telecom operators.

"The government has also further jacked up its advantage by restricting the spectrum to 5MHz only with a promise that a further 15MHz would be made available," Assocham said.

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