Department of Telecom (DoT) is looking to commence the auction for spectrum, including in 700 Mhz band, around mid-July, which may fetch the government a whopping Rs 5.36 lakh crore. DoT is expecting Cabinet approval on spectrum price by mid-May and issue notice for auction in June. It will be the biggest-ever auction in terms of value and is more than double the gross revenue of telecom services industry.
The Telecom Regulatory Authority of India (Trai) has suggested a plan for spectrum sale. Trai recommended a record high base price of Rs 11,485 crore per Mhz for the 700 Mhz band. According to the Trai paper, the cost of delivering mobile services in 700 Mhz band is approximately 70 per cent lower than 2100 Mhz frequency, which is widely used for 3G services.
Telecom Commission is meeting on March 28. Apart from spectrum auction the Telecom Commission in its meeting will deliberate upon half a dozen transformative norms for the industry including virtual network operators.
Spectrum is priced on the basis of its efficiency to carry mobile signals and ecosystem of device and equipment available for its usage. In 2016-17, the government expects revenue of Rs 98,995 crore from communication services, which includes proceeds from spectrum auction and other fees levied by the DoT. Telecom service providers had gross revenue of Rs 2.54 lakh crore in 2014-15.
Start Research-backed Investing ...Now. Subscribe to Sapphire
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
MoneyWorks4Me ensures this through: