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Govt to defer forthcoming auction of telecom spectrum by few days

24 Aug 2016 Evaluate

The government is all set to defer the forthcoming auction of telecom spectrum by few days on account of auspicious period and festival season by Hindus as requested by the telecom industry. Telecom Secretary J S Deepak has said many companies and people feel that the Navratra is starting from October 1 and that is a good time to bid so it gives them good comfort to bid and spend more money to buy the spectrum. As September 29 was fixed for the auction and it may change to the first week of October.

Deepak said that auctions will be successful and the Department of Telecom (DoT) will meet its revenue mobilisation targets through it. He further said that they are selling a lot of good quality spectrum, thus the price of spectrum will be high. In recently held pre-bid meeting almost all companies participated. The government planned to kick off the biggest ever spectrum auction on September 29 and it was expecting 25 per cent upfront payment for the spectrum below 1 GHz, which would be assigned within 30 days after the bidding.

The government is making available 2354.55 MHz of spectrum in these auctions and at base price it will garner Rs 5.56 trillion or Rs 5.56 lakh crore, which includes the additional Rs 27,000 crore of harmonised spectrum. It is putting up massive quantity of spectrum for the first time to help remove fragmentation and improve quality of services.

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