3G spectrum auction: Quantum 75% lower than TRAi recos

Government has issued details for auctioning 5 Mhz of 3G spectrum across 17 out of 22 service area at a pan-India base price of Rs 3,705 crore per megahertz. The quantum of spectrum in 2100 Mhz band (3G) being put for auction is 75 percent less than the quantum recommended by telecom regulator TRAI and demanded by industry. In the latest amendment to notice inviting application for spectrum auction set to start from March 4, the DoT has said that only one entity will be able to win 3G spectrum in one service area.

One block of 5 MHz has been put for auction in all service areas except Jammu & Kashmir, Bihar, Himachal Pradesh, West Bengal and Punjab. This amounts to a total of 85 MHz from which government estimates to garner Rs 17,555 crore. Of this a sum of Rs 5,793 crore is expected to be realised in the current financial year.

DoT has not announced any separate time line for 3G auction process which means that interested companies will have to submit application to bid for this spectrum by February 16. The DoT has also not announced any pre-bid session for 3G spectrum auction as was demanded by telecom sector players on January 13 when the session was held for rest of the spectrum bands--900 Mhz, 1800 Mhz and 800 Mhz band. However, companies have opportunity to approach DoT and seek clarifications by February 2.