Abstract

This paper conducts a social cost benefit analysis of TRAI recommendations on spectrum refarming and liberalization. Need for a social cost benefit analysis of the TRAI recommendations was recognized because a private cost benefit analysis fails to capture the benefit of liberalizing the 900 MHz band and also fails to capture the loss of benefits due to shutting down of other operators. The social cost benefit analysis demonstrates that there is an economic benefit of INR 500 crores/year if TRAI recommendations on spectrum refarming and liberalization are accepted.

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