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Practical ICT / Telecommunication Training in GSM, 3G and 4G at India

Friday, November 22, 2013

EGoM approves 'higher' base price for 2G spectrum auction:

The Empowered group of ministers (EGoM) has approved the Telecom Commission's proposal that recommended 15 per cent and 25 per cent hike in auction base price of 1,800 MHz and 900 MHz bands respectively, above the Telecom Regulatory Authority of India's (Trai) suggested price.

The Commission had earlier this month suggested fixing a minimum Rs 1,765 crore per megahertz (MHz) as the price for pan-India spectrum in the 1,800 MHz band, 15-per cent higher than Trai's suggested price of Rs 1,496 crore.

Even after the increase, the reserve price is lower than the one fixed for failed auction of November 2012, when spectrum in the 1,800 MHz band was offered at a base price of Rs 2,800 crore per MHz.

"The base price for 900 MHz should be 25 per cent higher than what the Trai had recommended," the EGoM, headed by defence minister AK Antony, said. 

Spectrum in this band will cost a minimum of Rs 360 crore per MHz for Delhi, Rs 328 crore for Mumbai and Rs 125 crore for Kolkata. 

Even after the increase, the reserve price is lower than the one fixed for failed auction of November 2012, when spectrum in the 1,800 MHz band was offered at a base price of Rs 2,800 crore per MHz.

"The EGoM met Friday and we took a final decision on the reserve price and the EGoM has accepted the reserve price recommendations of the Telecom Commission," Telecom Minister Kapil Sibal told reporters in the national capital.

An operator can bid for a maximum of 5 MHz in the 900 MHz band.

For the 1,800 MHz band, Sibal said that a decision will be taken on the quantum to be auctioned after consulting DoT about spectrum availability. "We have to finalise the total quantum of spectrum in the 1,800 MHz band that has to be put up for auction. That would be decided hopefully at the end of the coming week," Sibal said.

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