India’s Department of Telecommunications (DoT) has asked the telecoms regulator to clarify the reasoning behind its proposals – including its recommended reserve prices – for the controversial 2G auction.
The department has asked the Telecom…
India’s Department of Telecommunications (DoT) has asked the telecoms regulator to clarify the reasoning behind its proposals – including its recommended reserve prices – for the controversial 2G auction.
The department has asked the Telecom Regulatory Authority of India (Trai) to respond to a comprehensive list of comments on its proposals within a fortnight, according to a document on its website.
Indian-based telecoms operators have rallied against Trai’s proposals for the auction in the 800MHz and 1800MHz bands and, on Wednesday, discussed the issue with government officials.
Operators have argued the proposals, if accepted, will be detrimental to the Indian telecoms sector as a whole and force up prices for consumers. Norway’s Telenor, which co-owns local mobile operator Uninor, has been particularly vocal, criticising “high” reserve prices, “limited” spectrum to be made available and “regressive” rollout requirements.
In a statement on Wednesday, Telenor called upon the Indian government to take charge of the situation and ensure telecoms spectrum auctions “allow affordability, competition and investments to remain in India”.
Other operators have announced intentions to shut down their operations in the country.
Meanwhile, the DoT is reportedly in talks with the nation’s defence forces about making more spectrum available for the auction.
If the DoT succeeds in getting an extra 55MHz of spectrum in the 1,800MHz band, more operators should be able to participate in the auction and, potentially, get a better deal, local publication The Hindu Business Line reported.
According to the report, the DoT presented three auction scenarios to the Empowered Group of Ministers, including one involving an additional 55MHz from the defence forces. This scenario would see 47 blocks of 5 MHz spectrum made available across the country instead of the currently envisaged 33 blocks.
However, operators generally favour a scenario that would not require any spectrum to be reserved for refarming, the report added. In this case, more than 100 blocks of 5MGz spectrum would be auctioned.
Operators are also lobbying for the recommended reserve prices to be reduced by at least 80%, the report stated.
The final decision on these issues rests with the group of ministers.
In a further update, the DoT has released a ‘Request for Proposal’ from firms interested in conducting the auction. Interested firms are required to submit applications by 11 June and the auctioneer will be selected on 15 July. The department said it would issue an information memorandum on conducting the auction on 15 July.
