More Than 1500MHz Spectrum Likely to Be Available by 2015

About 1538MHz of spectrum in various bands for telecom services may be made available for auction next year, a move that will help the government expand mobile and broadband penetration in the country.

In the premium 700MHz band, which can be used for 4G and is even being considered for 5G services, 93MHz of radiowaves can be put for sale. In the 800MHz (CMDA), 900MHz and 1,800MHz bands 117.5MHz, 184MHz and 104MHz, respectively, can be made available, sources said.

In 2300MHz band (broadband wireless access spectrum), 320MHz spectrum, and in the 2500MHz band about 720MHz could also be put on the block for sale, they added.

Besides, the government expects to make available a fresh set of 300MHz spectrum for mobile services by 2017 and an additional 200MHz by 2020.

Sources said that almost all of the spectrum in 800MHz, 900MHz and 1800MHz will be available through the expiry of licences as well as that unsold in the last conducted auction.

For 700MHz band, sectoral regulator Trai had recommended that the reserve price for the spectrum should be four-times of that of the 1,800MHz band.

The 700-MHz frequency band is considered to be one of the most valuable slots for telecom services as most of the latest technology can be transmitted in this band. Also investment required to roll out infrastructure will be lower for telecom companies in 700MHz compared to using higher frequency.

Spectrum auction in the last four years has fetched the government about Rs. 1.75 lakh crore, which includes Rs. 61,162 crore this year from auction in the 800MHz, 900MHz and 1800MHz band and Rs. 1.05 lakh in 2010 in 2300MHz and 2500MHz.

Government has set a revenue target of Rs. 45,471 crore from communication services, including proceeds from spectrum auction and other related charges in 2014-15 fiscal.

Additionally, there are plans to make available 85MHz spectrum in the 2100MHz band - presently used for 3G services - but that will be subject to release by the Defence Ministry, sources said.

Availability of spectrum will aid the government in achieving the objectives in the National Telecom Policy (NTP) 2012.

According to NTP 2012, the government aims to increase rural teledensity from the current level of around 39 to 70 by the year 2017 and 100 by the year 2020.

Besides, it aims to provide affordable and reliable broadband on demand by 2015, to achieve 175 million broadband connections by the year 2017 and 600 million by the year 2020, at minimum 2 Mbps download speed and making available higher speeds of at least 100 Mbps on demand.