The new telecom policy 2011 will greet telecom operators with sharp rise in 2G spectrum prices with Telecom Regulatory Authority of India (TRAI) sticking to its recommendations of over six-fold jump in 2G spectrum prices. 

TRAI had earlier this year recommended Rs 10,972.45 crore for the contracted 6.2 Mhz spectrum for pan-India licence as against Rs 1,658 crore paid by operators till the last round of allocation of licence in 2008. 

The Department of Telecom (DoT) had sought clarifications from the Telecom Regulatory Authority of India (TRAI) on the spectrum pricing before finalising the National Telecom Policy 2011. 

In its response, TRAI said, "...should the government decide to charge the spectrum beyond the initial spectrum (6.2 MHz) by way of amending the licence conditions, the current price would be what has been estimated by the experts..." 

With regard to additional spectrum beyond the 6.2 MHz limit, each MHz of additional spectrum held by operators should cost one-time Rs 4,571.87 crore (all-India). 

However, it would vary from circle to circle and the operators would have to pay only for those where they hold extra spectrum. 

Most of old licences are due for renewal in the next 3-5 years and operators would have to pay as per the current prices recommended by TRAI. This would put extra financial burden on the service providers.