Trai recommends auction of 800MHz CDMA spectrum

Advertisement
By Press Trust of India | Updated: 22 February 2014 19:39 IST
Telecom regulator Trai Saturday recommended auction of CDMA spectrum at reserve price of Rs. 2,685 crore per MHz, which is around 50 percent higher than the previous pan-India base price.

The recommendations come after multiple rounds of discussions between the government and the regulator, which had earlier suggested that no auction be held for the 800MHz band, used by CDMA operators and 4G services, for want of takers.

"Authority recommends that the reserve price for the forthcoming auction of 800MHz spectrum should be fixed at 80 percent of the average valuation," Telecom Regulatory Authority of India said in its recommendation 'Reserve Price for Auction of Spectrum in the 800MHz Band'.

Advertisement

It has recommended a reserve price of Rs. 2,685 crore per MHz, compared to around Rs. 1,800 crore that was fixed for the auction in March 2013.

The last reserve price of CDMA spectrum was about 33 percent lower that GSM spectrum in 1800MHz band at that time.

Trai has also imposed a condition that the government carve out a contiguous block of 5MHz frequencies before conducting the auction.

At present contiguous blocks are available only in 5 out of 22 service areas nationwide. They are Mumbai, Maharashtra, Madhya Pradesh, Assam and North-East.

Advertisement

According to CDMA telecom operators, harmonisation of frequencies may take months or even years, delaying the auction of 800MHz band. Arranging one block of contiguous spectrum will require reassignment of frequencies already by held by existing users.

During consultation process Tata Teleservices and Reliance Communications, who hold CDMA spectrum, told Trai "The process of shifting (frequencies) is cumbersome and will be much more intense as the customers will be impacted across multiple circles".

Advertisement

Sistema Shyam Teleservices (SSTL) had also said that the harmonisation process by government can take several months or even years because of which government can lose revenue that it can otherwise get as licence fee, spectrum usage charges and other cess charges for radiowaves.

SSTL was only bidder for the CDMA spectrum in March 2013 auction and won radio waves to operate in 8 circles for Rs. 3,639 crore.

Advertisement

Trai has recommended that the entire CDMA spectrum held by MTNL be put up for auction as it is underutilised.

The regulator has also suggested that government should take back of CDMA spectrum held by BSNL for auction except one block of frequency in Jammu and Kashmir, Assam and North-East service area.

Trai has also recommended that the auction be conducted in blocks of 1.25MHz and it should be mandatory for new entrants to win at least 5MHz of spectrum specially in the contiguous blocks.

"However, an existing TSP i.e. a TSP having some spectrum holding in the 800MHz band should be permitted to bid for a minimum 1 block of spectrum. New entrants must be assigned the earmarked contiguous carriers only," Trai said.

It has recommended that Department of Telecom should put up the entire available spectrum in 800MHz, including that to be taken back from public sector telecom firms, for auction.

When contacted SSTL spokesperson said: "Given that the recommendations by Trai specific to the reserve price of 800MHz spectrum have just come out, SSTL is still in the process of going through all the details."

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Advertisement

Related Stories

Popular Mobile Brands
  1. Best Phones With Telephoto Cameras Under Rs. 40,000
  2. OnePlus 16 vs iQOO 16: Price and Specifications Compared
  1. Samsung Galaxy F70 5G With 5,000mAh Battery, 50-Megapixel Camera Goes on Sale in India: Price, Offers
  2. Apple ‘Pro and Tell’ Event Set for Next Week; First MacBook With Touchscreen, New iPad Mini and More Expected to Launch
  3. Cysic Shuts Down Bridge After Attacker Illegally Creates 10 Million CYS Tokens
  4. JPM Coin Arrives on Ethereum as JPMorgan Expands Institutional Payments
  5. Vivo V80 FE Reportedly Spotted on BIS Certification Website, India Launch Seems Imminent
  6. Airtel’s New Recharges in India Announced: Rs. 185, Rs. 203 and Rs. 206 Voice-Only Plans Details
  7. Vivo X500 Ultra Leak Reveals Launch Timeline, Chipset, Display and Key Specifications
  8. iQOO Neo 12 Launch Date Announced; Design, Colour Options Teased
  9. Qubic Halts Chain as Attacker Exploits Weak Seeds to Drain 1,400 Wallets
  10. iPhone Duo Battery Capacity Revealed Days Before Foldable Goes on Sale
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.