Spectrum Auction Guidelines Issued by the Indian Government

Government of India recently issued the guidelines for the upcoming spectrum auction to be held this year. The auction will fetch the Indian Government revenue of Rs. 45,000 crore. The Union Telecom Minister, Kapil Sibal had announced earlier the dates for the auction as March 11.

The Government is likely to put 1800 MHz band, which is unsold in the second round of auction. This will also include airwaves caught in telecom licenses in 900 MHz band. It is due for renewal in 2014. The auction guidelines read that the auction for 900 MHz and 1800 MHz band which are used by GSM services now will be conducted alongside the auction for 800MHz band which is being used by CDMA services.

Government plans to auction 12 blocks of 1.25 MHz each in 1800 MHz category in Delhi. This is to be sold out in Mumbai at a price 30 per cent less compared to the one fixed for auction in November. The base price has been fixed at Rs.479.92 crore and 485.15 crore for Mumbai and Delhi.

Only 8 blocks are to be put into auction in Rajasthan and Karnataka, the price being fixed at 46.96 crore and 231.08 crore. Provisions are also included to provide 3 additional blocks of spectrum in case of a need. The government will also auction 12 blocks of 900MHz spectrum in Mumbai and Delhi while Kolkatta gets 10 blocks of spectrum.

A Norwegian Telecom Provider, Telenor has expressed its interest for bidding in Mumbai circle. The guidelines also mentioned that telecom providers who win the auction are free to use airwaves for their services sticking to the limits of licenses. The bidders who acquire spectrum in auctions can use it for 20 years for telecom services as per the released guidelines.