Sistema Shyam, a leading CDMA-based telecom service provider, has slammed telecom regulatory authority of India (TRAI) for its recommendation on the reserve price for the spectrum. It is the only telco that is interested in 800 MHz band.
 
The company has requested empowered group of ministers (EGoM) to reduce price of 800 Mhz band. In a letter to the ministerial panel, Sistema Shyam has said that the price discovered through last auction should be taken as reserve price for it.
 
Company further says the reserve price of the 800 Mhz should be 80 % of the 1800 MHz spectrum price.
 
The correct valuation is Rs 1,816 crore per MHz, whereas TRAI in its recommendations to DoT in March 2014 had suggested that spectrum price should be Rs 2,685 crores per Mhz.
 
This price is 47 percent up from the price for 800 MHz suggested by TRAI in September 2013.

                                 
 
In a letter to EGoM members Sistema says aberration in 1800 MHz spectrum price based valuation of 800 MHz in Gujarat and Maharatra circles may be corrected so that variation in reserve price decided in March 2013 auction is reduced.
 
Sistema says the high reserve price of 800 MHz band is due to incorrect valuation methodology which is based on the winning price of 900 MHz spectrum band.
 
The auction of 900 MHz spectrum was conducted in 3 metro circles where companies submitted exorbitant bids to protect their business as their license were expiring. Sistema also says TRAI has used radio characteristics of 1800 Mhz spectrum pricing band to be 1.5 or 2 time for the valuation of 800 Mhz spectrum band. The proportion characterstics of 800 MHz price for network deployment is incorrect.