Today at 10:00 AM, the government will start the spectrum auction for telecom services.
Government: 10,522.35 MHz of total spectrum across multiple bands is up for sale; at reserve pricing, it is worth Rs 96,238.45 crore.
The following frequency bands are scheduled for auction: 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz, and 26 GHz.
On Tuesday, June 25, 2024, the government will undertake a spectrum auction to support current telecom services and ensure service continuity. This is consistent with the government’s pledge to provide all residents with access to modern, reasonably priced, high-quality telecommunication services.
The Spectrum Auction has been started by the Department of Telecommunications (DoT), and on March 8, 2024, a Notice Inviting Applications (NIA) was released. The following spectrum bands will be up for purchase in the next auction, according to the Ministry of Communications: 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz, and 26 GHz.
10,522.35 MHz of spectrum total, spread across several bands, is up for sale. At reserve pricing, it is worth Rs 96,238.45 crores.
|
Band |
Total Spectrum put to Auction (In MHz) | No of LSAs where Spectrum is sold | Value of Spectrum at Reserve Price (In Crs) |
| 800 MHz | 118.75 | 19 | 21341.25 |
| 900 MHz | 117.2 | 22 | 15619.6 |
| 1800 MHz | 221.4 | 22 | 21752.4 |
| 2100 MHz | 125 | 15 | 11810 |
| 2300 MHz | 60 | 6 | 4430 |
| 2500 MHz | 70 | 5 | 2300 |
| 3300 MHz | 1110 | 22 | 16251.2 |
| 26 GHz | 8700 | 21 | 2734 |
| Total | 10,522.35 | 96,238.45 |
Highlights of the Spectrum Auction:
1. Three bidders—M/s Bharti Airtel Limited, M/s Vodafone Idea Ltd, and M/s Reliance Jio Infocomm Ltd—will participate in the auction.
Auction procedure: An electronic auction using the Simultaneous Multiple Round Ascending (SMRA) method will be used.
2. Spectrum duration: A twenty-year (20) timeframe will be used to assign the spectrum.
3. Payment terms: Winning bidders will be able to pay in twenty equal yearly installments, appropriately safeguarding the net present value (NPV) at an interest rate of 8.65%.
4. Return of spectrum: After a minimum of ten years, spectrum that was obtained through this auction may be returned.
5. Spectrum Usage Charge: For spectrum purchased in this auction, there won’t be any Spectrum Usage Charges (SUC).
6. Bank Guarantees: Submission of a Financial Bank Guarantee (FBG) and Performance Bank Guarantee (PBG) is not mandatory for the winning bidder.
7. Three mock auctions were held on June 3, 14, and 13 of 2024 to get bidders acquainted with the e-Auction platform. The Auction Catalogue was then released on June 24, 2024, at 9:00 AM in order to make sure that the bidders’ information was accurate. On June 25, 2024, at 10:00 AM, the live auction will begin.
8. Additional information regarding the Spectrum Auction, such as reserve price, pre-qualification requirements, Earnest Money Deposit (EMD), auction rules, and other terms and conditions, is outlined in the NIA, which is available on the DoT website at https://dot.gov.in/spectrum.
