The Telecom Commission has favoured auctioning of all available spectrum at the reserve price suggested by Telecom Regulatory Authority of India. The government is expected to garner Rs.5.46 lakh crore from the auction scheduled to be held in July, 2016. The auction of airwaves will include 700 MHz spectrum for the first time in the country.
The amount of auction by each bidder in the higher frequency spectrum bands, above 1GHz (1800 MHz, 2100 MHz, 2300 MHz and 2500 MHz ) should be paid, 50 per cent upfront instead of 33 per cent under the current rules. The balance to be paid in 10 years after a two year moratorium. For spectrum purchased in the below 1 GHz band (700 MHz, 800 MHz and 900 MHz), companies would require to pay 25 per cent at upfront payment and the rest over 10 years after two years of moratorium.
The reserve price fixed for the 700 MHz spectrum is about Rs.11,500 crore per MHz.
The proposal will now be sent to the Cabinet for approval in the next few days.




