TRAI issues consultation paper for spectrum auction

As these licensees were holding spectrum in both 900 and 1,800 MHz bands and the government had made a decision to re-farm the spectrum in the 900 MHz band, therefore, in March 2013, spectrum in the 900 MHz assigned to these licensees was put to auction.

“Now, since the spectrum in 700 MHz band is also proposed to be auctioned, above provision of spectrum cap needs to be reviewed”, Trai said.

Trai said that 35 MHz (paired) spectrum is available for commercial goal in each of the 22 service areas in the 700 MHz band, according to the information provided by the DoT.

Eight licences, including two of MTNL’s, will be expiring in 2017-18.

The Telecom Regulatory Authority of India has proposed radical changes in spectrum holding norms, suggesting that the government keep only an overall cap, abolish band-wise limits and have a combined ceiling on what a carrier can hold in the efficient 700 MHz, 800 MHz and 900 MHz bands put together.

The department has sought the pricing of airwaves in the 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz and 2500 MHz bands through a letter dated July 9.

“DoT provided certain information through their letter dated October 16”. This information is also not complete.

The telecom watchdog said to avoid further delay in floating the consultation paper, “the Authority has chose to issue the consultation paper based on the available information”. For perspective, the 900 MHz spectrum in the March 2015 auction sold at Rs 8,681 crore per MHz, which was a 95.2% premium over the reserve price. Either due to non-availability of inter-operator guard band or Government’s own requirement, the Govt. will not be auctioning the entire 76.25 MHz. In 1,800 MHz, except in the service areas of Delhi, Mumbai, Karnataka and Rajasthan, some spectrum was sold in all the other areas.

In 2100 Mhz band, a total of 345 Mhz spectrum is available for auction of which 15 MHz was left unsold in the previous auction while 330 MHz will become available due to vacation by the Defence.

The consultation paper floated by TRAI touched on key issues like quantum of spectrum to be auctioned, spectrum cap, spectrum block size, roll-out obligations, and methods to be used for valuation and estimation of reserve price.

The regulator stated DoT additionally referred to its earlier reference dated October sixteen, 2014 and requested it to expedite the suggestions on relevant reserve worth 2300MHz and 2500MHz bands for all service areas.

“Written comments on the issues raised in the consultation paper are invited from the stakeholders by December 21 and counter comments by December 28”, it said, adding that there will not be any extension of timelines.