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India calls for spectrum auction applications

Connectivity BusinessbyConnectivity Business
January 11, 2015
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India’s Department of Telecommunications has invited applications for the 2G and 3G spectrum auction set to commence on 25 February.
Interested parties have until 6 February to apply to take part in the simultaneous multiple rounds ascending auction,…

India’s Department of Telecommunications has invited applications for the 2G and 3G spectrum auction set to commence on 25 February.

Interested parties have until 6 February to apply to take part in the simultaneous multiple rounds ascending auction, which the government hopes will net Rs648.4bn (US$10.21bn).

The final list of bidders will be published on 20 February.

The official notice inviting applications states that a single, online auction process will be carried out for spectrum in the 800MHz, 900MHz, 1,800 MHz and 2,100 MHz bands.

A total 103.75 MHz will be available in the 800 MHz band, 177.8 MHz in the 900 MHz band and 99.2 MHz in the 1,800 MHz band. The telecoms department, part of the communications ministry, said details concerning the 2,100 MHz band will be announced later.

According to local media reports, the government has approved the sale of 3G spectrum in the 2,100 MHz band in 17 telecoms service areas but has yet to set the base price.

The approved based prices for airwaves in the 800 MHz, 900 MHz and 1,800 MHz bands are Rs36.46bn (US$586.7m), Rs39.8bn (US$640.8m) and Rs21.91bn (US$352.7m) respectively.

Licences last for 20 years. The auction is open to both existing mobile operators and potential new entrants.

Unified licences, which allow operators to offer telephone, internet and related communications services under a single licence, may only be awarded to companies registered under Indian company laws. Foreign applicants can form or acquire an Indian company to obtain a unified licence or apply for one via an Indian company in which they own an equity stake.

The auction will be crucial for Bharti Airtel, Vodafone India, Idea Cellular and Reliance Communications (RCom), which all have permits expiring between 2015 and 2016.

Other operators, including the local units of Norway’s Telenor and Russia’s Sistema, are also expected to vie for bandwidth to expand into new areas.

 

Tags: Bharti AirtelBharti EnterprisesIdea CellularJFSC SistemaReliance Communications (RCOM)TelenorVodafone India
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