Trai proposes CDMA spectrum auction
24 Feb 2014 3:58 AM IST
The proposal comes after multiple rounds of discussions between the Government and the regulator, which had earlier suggested that no auction be held for the 800 Mhz band, used by CDMA operators and 4G services, for want of takers.
‘The Authority recommends that the reserve price for the forthcoming auction of 800 MHz spectrum should be fixed at 80 per cent of the average valuation,’ the Telecom Regulatory Authority of India said in its recommendation ‘Reserve Price for Auction of Spectrum in the 800 MHz Band’. 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 per cent lower that GSM spectrum in 1800 Mhz band at that time. Trai has also imposed a condition that the Government carve out a contiguous block of 5 Mhz frequencies before conducting the auction.
At present contiguous blocks are available only in five out of 22 service areas nationwide. They are Mumbai, Maharashtra, Madhya Pradesh, Assam and North-East. According to CDMA telecom operators, harmonisation of frequencies may take months or even years, delaying the auction of 800 Mhz band. Arranging one block of contiguous spectrum will require reassignment of frequencies already by held by existing users.
During the consultation process, Tata Teleservices and Reliance Communications, which 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.’
Sistema Shyam Teleservices (SSTL) had also said that the harmonisation process by government can take many months or even years due to 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 radiowaves to operate in 8 circles for Rs 3,639 crore.
Trai has said the auction be held in blocks of 1.25 Mhz and it should be mandatory for new entrants to win at least 5 Mhz of spectrum specially in the contiguous blocks. ‘However, an existing TSP, ie a TSP having some spectrum holding in the 800 MHz band, must be allowed to bid for a minimum 1 block of spectrum. New entrants must be assigned the earmarked contiguous carriers only,’ Trai said.
‘The Authority recommends that the reserve price for the forthcoming auction of 800 MHz spectrum should be fixed at 80 per cent of the average valuation,’ the Telecom Regulatory Authority of India said in its recommendation ‘Reserve Price for Auction of Spectrum in the 800 MHz Band’. 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 per cent lower that GSM spectrum in 1800 Mhz band at that time. Trai has also imposed a condition that the Government carve out a contiguous block of 5 Mhz frequencies before conducting the auction.
At present contiguous blocks are available only in five out of 22 service areas nationwide. They are Mumbai, Maharashtra, Madhya Pradesh, Assam and North-East. According to CDMA telecom operators, harmonisation of frequencies may take months or even years, delaying the auction of 800 Mhz band. Arranging one block of contiguous spectrum will require reassignment of frequencies already by held by existing users.
During the consultation process, Tata Teleservices and Reliance Communications, which 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.’
Sistema Shyam Teleservices (SSTL) had also said that the harmonisation process by government can take many months or even years due to 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 radiowaves to operate in 8 circles for Rs 3,639 crore.
Trai has said the auction be held in blocks of 1.25 Mhz and it should be mandatory for new entrants to win at least 5 Mhz of spectrum specially in the contiguous blocks. ‘However, an existing TSP, ie a TSP having some spectrum holding in the 800 MHz band, must be allowed to bid for a minimum 1 block of spectrum. New entrants must be assigned the earmarked contiguous carriers only,’ Trai said.
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