DoT Asks TRAI to Suggest Reserve Price for Spectrum Auction

Ahead of the spectrum auction slated to take place from 3 February 2015, the Department of Telecommunications (DoT) has asked the Telecom Regulatory Authority of India (TRAI) to suggest a reserve price for auction of the 2100 MHz, 2300 MHz and 2500 MHz bands across various states in India.

The government is looking at a total bid value of ₹25,065 crore from the next round of auction with an aim to earn ₹5000 crore in this financial year.

The Ministry of Defence (MoD) has not yet agreed to release 5 MHz of 3G spectrum to the DoT. However, ₹5000 crore rupees revenue mark is possible to attain if the Ministry of Defence releases spectrum in 3G and 4G bands before the date announced. In case the ministry releases the said radio waves, it will be put up for auction in 17 telecom zones, reported Business Standard.

The Cellular Operations Association of India has proposed DoT to exchange 15 MHz of spectrum in the 199 MHz band with equal quantum of radio waves in the 3G band of 2100 MHz, which has not been deployed by MoD so far.

Additionally, 20-MHz of spectrum in the 2300-MHz band will be auctioned in 19 service areas except in Punjab, Rajasthan and Uttar Pradesh. In the 2500 MHz band, the government would auction 20 MHz of radio waves in eight service areas- Delhi, Mumbai, Kolkata, Maharashtra, Gujarat, Andhra Pradesh, Karnataka and Tamil Nadu.

DoT has also said that the government would possibly offer 184 MHz of radio waves in the 900 MHz band across 18 telecom zones and 104 MHz spectrum across 17 circles in the 1800 MHz band.

This has been possible after Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telecom Nigam Limited (MTNL) gave up the waves allocated to them in 2010.

However, in 2010 the government auctioned 3G spectrum but no one could purchase 5MHz of spectrum for all circles in India.