India prepares for biggest spectrum auction

The Indian government has cleared India’s largest auction of telecom spectrum. The spectrum to be auctioned is valued at Rs5.66 trillion. The telecom regulator Trai has asked to make new recommendations on spectrum usage charges.

Based on the base price, the Indian spectrum is valued at Rs.5.66 trillion. The government is putting on sale spectrum bands of 700MHz, 800MHz, 900MHz 1,800MHz, 2,100MHz, 2,300 MHz and 2,500 MHz.  

The spectrum auction plan was recommended by Trai and reviewed by the Department of telecommunications before being agreed by the government.

Finance minister Arun Jaitley called it the biggest spectrum auction in Indian history and added that fresh consultations were needed on spectrum usage charges (SUC). Trai has been asked to make new recommendations.

On 7 June, the Telecom Commission announced a weighted average methodology to calculate SUC and lowered the rate to 3% for the upcoming auction from 5% in earlier auctions.

The weighted average calculation was based on the time and frequency band of acquisition. The government has approved Trai’s proposal on the spectrum  pricing. “The notice inviting applications will come out after clarification on SUC is received from Trai,” he said.

It usually takes 60 days for the government to conduct the auction after cabinet approval.

The Indian government has agreed to go ahead with India’s largest auction of telecom spectrum

Indian government, Indian telecom regulator Trai, biggest spectrum auction in Indian history