With an eye on auctioning the spectrum in February 2015, DoT and TRAI are hoping to finalise the consultative process for deciding base prices by 22 December
The Department of Telecommunications (DoT) under the Government of India (GoI) is planning on going ahead with auctions of 2G and 3G airwaves together in February. The auctions will be conducted after taking into account the base price recommendations given by the Telecom Regulatory Authority of India (TRAI).
The DoT had asked TRAI to expedite the decision on base price. TRAI released the Consultation Paper on “Valuation and Reserve Price of Spectrum: 2100 Mhz,” today. TRAI has invited comments and inputs on the Consultation Paper by 15 December. After counter-comments on 19 December, an Open House will be held on 22 December.
The Consultation Paper noted that the 2100 Mhz band which is used by 3G services is currently being used by the Defence services. Unless the Defence services agree to vacate this spectrum, this frequency will be unavailable for the auction.
When spectrum was auctioned in 2010, the Defence Services had vacated 20 Mhz out of the 25 Mhz spectrum that was being used by them. The agreement at the time was that the remaining 5 Mhz of spectrum would be vacated only if alternate infrastructure was made available for the Defence Services to migrate to.
If the Defence Services release only the 5 Mhz held by them in the 17 circles, then licenses to these circles will be auctioned. Another possibility is that the Defence Services would migrate to the 1,900 Mhz spectrum, so that not only it frees up the 5 Mhz held by them in various circles, but also an additional 15 Mhz on a pan-India basis.
Telecom companies, as well as the regulator, have been of the view that the auction should take place only when adequate spectrum is made available, and the bidding should be held simultaneously for both the services - 2G and 3G.
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