Spectrum auction from May 20, to start at base price of Rs 96,317.65 crore

The Government will begin upcoming spectrum auction from May 20, according to the notice inviting application released by the Department of Telecom on Friday. The eight spectrum bands for mobile phone services will be auctioned at a base price of Rs 96,317.65 crore.

Spectrum which is held by certain companies undergoing insolvency processes as well as frequencies expiring this year will also be put on auction.

The Union Cabinet had recently approved auctions in eight spectrum bands for mobile phone services, saying "all the available spectrum in 800, 900, 1800, 2100, 2300, 2500, 3300 MHz and 26 GHz bands will be put on auction."

An official statement had said, "As recommended by TRAI, the reserve prices for various bands have been revised using suitable indexation."

Meanwhile, Union Minister Ashwini Vaishnaw hailed the Union Cabinet's decision on spectrum auction calendar for mobile phone services in eight bands, and termed it a 'major reform'.

Taking to 'X', Vaishnaw wrote, "Annual spectrum auction calendar is a major reform. Now telecom service providers will get opportunity to buy spectrum regularly in a transparent way."

Annual spectrum auction calendar is a major reform. Now telecom service providers will get opportunity to buy spectrum regularly in a transparent way.

NIA published: https://t.co/b5sWh1weqG@DoT_India

— Ashwini Vaishnaw (मोदी का परिवार) (@AshwiniVaishnaw) March 8, 2024

The DoT has fixed April 22 as the last date for submission of application and it will release the final list of bidders on May 9.

The spectrum will be assigned for a period of twenty (20) years and successful bidders will be allowed to make payments in 20 equal annual instalments, duly protecting the NPV at the interest rate of 8.65 per cent.

The DoT has provided an option to surrender the spectrum acquired through the upcoming auction after a minimum period of ten years.

This is the second spectrum auction after telecom reforms that were put in place in September 2021. Therefore, like the previous auction held in 2022, there will be no spectrum usage charges (SUC) for the spectrum acquired in this auction.

Successful bidders will not be required to submit a financial bank guarantee (FBG) and performance bank guarantee (PBG), the statement said.

With Agency Inputs)