Spectrum Auction for 4 Bands to Start on Wednesday

Department of Telecom will start the biggest ever auction of 2G and 3G spectrum on Wednesday wherein eight firms will bid to acquire radiowaves in four bands, which may fetch the government over Rs. 82,000 crores.

The government plans to sell 380.75MHz of spectrum in three bands - the premium 900MHz band, 1800MHz and 800MHz, besides 5 MHz in the 2100MHz band across 17 out of 22 telecom areas in the country.

Based on the reserve price, the government is estimated to garner over Rs. 82,000 crores. However, the government is hopeful of getting around Rs. 1,00,000 crores from the sale of radiowaves used for mobile telephony.

At the minimum or auction start price for the 2100MHz band or 3G spectrum, the government would garner at least Rs. 17,555 crores. The reserve price for auction of 2G spectrum in 800MHz, 900MHz and 1800MHz bands will fetch the government Rs. 64,840 crores.

Most of the spectrum being put up for the auction is presently held by Airtel, Vodafone, Idea Cellular and Reliance Telecom. Their licences are expiring in 2015-16.

Mobile licences for Idea Cellular's 9 circles, 6 circles of Airtel and 7 circles each of Vodafone and Reliance Telecom are coming up for renewal.

Overall there are 29 licences in 18 service areas which expire in 2015-16. These licences hold 184MHz spectrum in the 900MHz band and 34.2MHz in 1800MHz band.

It is mandatory for these companies to bid for spectrum if they have to continue offering mobile and other telecom services as their permit is expiring.

The government had raked in Rs. 62,162 crores from the last spectrum auction in February 2014.