BackGovt issues details for auction of 5MHz of 3G spectrum
The quantum of spectrum in 2100MHz band (3G) being put for auction is 75% less than what Trai recommended
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New Delhi: Government has issued details for auctioning 5MHz of 3G spectrum across 17 out of 22 service area at a pan-India base price of ₹ 3,705 crore per megahertz. The quantum of spectrum in 2100MHz band (3G) being put for auction is 75% less than the quantum recommended by telecom regulatory authority of India (Trai) and demanded by industry.
In the latest amendment to notice inviting application for spectrum auction set to start from 4 March, the department of telecom (DoT) has said that only one entity will be able to win 3G spectrum in one service area. One block of 5MHz has been put for auction in all service areas except Jammu and Kashmir, Bihar, Himachal Pradesh, West Bengal and Punjab.
This amounts to a total of 85MHz from which government estimates to garner ₹ 17,555 crore. Of this a sum of ₹ 5,793 crore is expected to be realised in the current financial year. DoT has not announced any separate time line for 3G auction process which means that interested companies will have to submit application to bid for this spectrum by 16 February.
The DoT has also not announced any pre-bid session for 3G spectrum auction as was demanded by telecom sector players on 13 January when the session was held for rest of the spectrum bands—900MHz, 1800MHz and 800MHz band. However, companies have opportunity to approach DoT and seek clarifications by 2 February.
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