India’s upcoming spectrum auction could reportedly include 3G airwaves, which the defence ministry has agreed to vacate.
The plan, if confirmed, is expected to be well received by local telcos which have called for additional frequencies to be made…
India’s upcoming spectrum auction could reportedly include 3G airwaves, which the defence ministry has agreed to vacate.
The plan, if confirmed, is expected to be well received by local telcos which have called for additional frequencies to be made available.
In October, India’s four largest mobile operators – Bharti Airtel, Vodafone India, Idea Cellular and Reliance Communications – sent a joint letter to telecoms minister Ravi Shankar Prasad asking for spectrum in the 900, 1,800, 800 and 2,100 MHz bands to be auctioned simultaneously in a “big bang” sale.
The defence ministry plans to release 5 MHz of spectrum in the 2,100 MHz band for 17 telecoms service areas, the Economic Times reported today.
Other spectrum set to be auctioned next February is in the 900 MHz and 1,800 MHz GSM and 800 MHz CDMA bands.
Unidentified “top sources” were cited as saying that the 5 MHz of 3G spectrum will be released “soon”. When asked whether it will be included in the February auction, one source responded “I hope so”.
The government will have the final say on the matter.
The inter-ministerial Telecom Commission recently proposed reserve prices for the 900, 1,800 and 800 MHz spectrum of Rs36.93bn (US$591.81m), Rs21.91bn (US$351.11m) and Rs36.46bn (US$584.37m) respectively.
The government aims to raise at least Rs95.3bn (US$1.53bn) from the auction. But the prices, which are higher than regulator Trai’s recommendations, have elicited mixed responses from the local telecoms sector, including from MTS India. The Sistema-owned operator reportedly expressed concern that the rates may prohibit a return on investment.
The prices still require final approval from Prasad.
The telecoms ministry also reportedly wants Trai to expedite the pricing of 3G airwaves so they can be auctioned with the other spectrum.
Last February, the country raised US$9.8bn when it sold spectrum in the 900 and 1,800 MHz bands to seven local operators. The four leading carriers all won frequencies, with Vodafone and Bharti being the top bidders.
