TRAI addresses shortage of 2G spectrum, proposes lower spectrum licensing fees

The Telecoms Regulatory Authority of India (TRAI) has issued a number of recommendations regarding the wireless market, aimed at achieving the government’s target of 200 million GSM and CDMA subscribers by 2007. In particular, the TRAI calls for additional frequencies to be allocated to GSM and CDMA operators as soon as possible to expand coverage to more rural areas and improve services in regions already covered. In addition it says it will reduce operators’ spectrum licensing fees from 6% of annual revenues to 4%.