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DoT proposes commencing spectrum auction in two phases

19 Nov 2014 Evaluate

The Department of Telecom (DoT) proposal to conduct spectrum auctions in two phases, between February and May next year, has started getting resentment from the telecom operators, who are saying that phased auction will only create uncertainty.

Earlier, as per a DoT presentation after a closed door meeting with the Minister of IT & Communications, it showed its keenness on holding one round of auctions on February 25, before the end of this fiscal year, and another on May 30, when additional frequency bands are expected to be vacated by the Defence forces. The auctions in February will adhere to the earlier schedule with spectrum in the 900 MHz, 800 MHz and the 1800 MHz bands, while the one in May is for airwaves in the 2100 MHz, 2300 MHz and 2500 MHz bands.

However, the telcos are disappointed with this proposal as they wanted these frequencies to be sold in a simultaneous auction, reasoning that if all the bands had been clubbed together in a single auction, there would have been more supply of airwaves and companies would possibly have to pay less.

Telecom operators have argued that the 2100 MHz band is not a substitute for existing GSM players, hence selling spectrum in the 2100 MHz and 2500 MHz bands is not a fallback option for an existing player but bringing these additional frequencies will ease the demand for 900 MHz by players who do not have 3G spectrum. The Cellular Operators Association of India has further stated that the Telecom Ministry should quickly get the Defence Ministry to vacate spectrum early and put all bands on sale in February or extend the licence tenure of incumbent players and hold a single auctions in May.

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