DoT takes wraps off spectrum bidding norms - Daily News & Analysis

The Department of Telecom (DoT) on Tuesday laid down spectrum auction guidelines, clearly stipulating that airwaves in 1800 MHz, 900 MHz and 800 MHz bandwidths will be allocated through auction. In 800 MHz band, the block size shall be 1.25 MHz (paired) while the auction will be conducted for 21 service areas. There will be no auction of spectrum in Rajasthan, the guidelines stated. In this band, in addition to the three blocks (3.75 MHz), there will be a provision for spectrum of up to one additional block of 1.25 MHz for topping up the three blocks put to auction i.e. a total of 4 blocks each of 1.25 MHz, totaling 5 MHz, to meet the requirements of new entrants if such an exigency arises. However, the top-up block is not available in service areas of Delhi, Kolkata, Maharashtra and Mumbai. In Andhra Pradesh and Punjab, only two two blocks (2.50 MHz) will be put up for auction and no top-up blocks will be available. The reserve price per block for Mumbai and Delhi circles in this band is Rs441 crore and Rs450.49 crore, respectively. The auction in 1800 MHz band will be conducted for Delhi, Mumbai, Karnataka and Rajasthan and the block size will be 1.25 MHz (paired). The reserve price per block for Mumbai and Delhi circles in this band stands at Rs474.92 crore and Rs485.15 crore, respectively. In the 900 MHz band, too, the block size shall be 1.25 MHz (paired) and the auction will be conducted for Delhi, Mumbai and Kolkata. And the reserve price per block for Mumbai and Delhi circles are Rs949.84 crore and Rs970.30 crore, respectively. The overall spectrum cap in each service area is 25% of spectrum allotted and put for auction in all the bands. According to the guidelines, a simultaneous multiple round ascending e-auction shall be conducted, the details of which will be notified separately. The broad stipulations are the bidding shall be conducted service area wise simultaneously for 1800 MHz and 900 MHz bands, and the auction of airwaves in 800MHz band will be conducted separately for 21 service areas. The guidelines further stated that operators with liberalised spectrum can share spectrum without a one-time charge and the reserve price for auction shall be set for each service area for each bandwidth. The validity period of the spectrum won in this auction shall be 20 years and mergers and acquisitions shall be according to the guidelines on the subject issued by the department from time to time. The 2-day auction which took place in November last year did not lead to any price discovery as the bids came in at less than half the reserve price, which had been set at a whopping Rs14,000 crore for 5 MHz spectrum. The government got just over Rs9,407 crore against an expected Rs28,000 crore. The government just hopes that another round of auction will help yield a market determined price of spectrum through a transparent process, ensure efficient use of spectrum and avoid any hoarding. via Technology - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNF8RjKjc0Xgm77oJBXAiHe5Moh1Tg&url=http://www.dnaindia.com/money/report_dot-takes-wraps-off-spectrum-bidding-norms_1791578

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