Union Cabinet approves auction of telecom spectrum

New Delhi: The Union Cabinet chaired by Prime Minister Shri Narendra Modi has approved the proposal of spectrum auction of the Department of Telecommunications. Under this auction, the spectrum will be handed over to successful bidders for providing commercial mobile services.

The auction will be for a spectrum of 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, and 2500 MHz frequency bands. This spectrum will be assigned for a validity period of 20 years. A total of 2251.25 MHz is being proposed, with a total value of Rs 3,92,332.70 crore (at reserve price).

Telecom service providers who have acquired the rights to use spectrum through the auction will be able to increase the capacity of their network, while the new service provider will be able to start their services.

In this auction, bidders comply with the norms/conditions ie block size in which the bidders will be able to submit their bids, Spectrum cap ie the maximum amount of spectrum to be paid by each bidder after the end of the bid, opening obligations, payment terms, etc. Have to do.

Successful bidders will have to pay the entire bid amount in a lump sum or a fixed amount (25 percent in the 700 MHz, 800 MHz, and 900 MHz bands received) or 50 for the spectrum received in the 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz bands. Percent) to be paid in a lump sum and the outstanding amount will have to be paid in a maximum of 16 uniform annual instalments after the moratorium of two years.

In addition to the bid amount, the successful bidder will also have to pay 3 percent of adjusted gross revenue (AGR) in addition to wireline services as spectrum usage charges received through this bid.

The spectrum auction is a transparent process of providing spectrum to successful bidders. Adequate availability of spectrum enhances the quality of telecommunication services for consumers.

It is relevant that the telecom sector has become a major infrastructure sector today due to strong linkage with economic progress, direct and indirect employment generation, and the spread of Digital India, hence the appropriate decision of the Cabinet is expected to have a beneficial impact on all aspects.