Centre commences auction for spectrum valued at Rs 96,238 cr for telecom services

The Centre on Tuesday introduced it has begun the public sale of spectrum price Rs 96,238.45 crore for telecom providers.

The overall quantum of spectrum being auctioned is 10,522.35 MHz in varied bands, valuing Rs 96,238.45 crore at reserve costs, stated the Ministry of Communications.

The next spectrum bands will go up for bidding within the public sale — 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz and 26 GHz — that begins at 10 a.m.

The public sale will see participation from three bidders: Bharti Airtel, Vodafone Concept and Reliance Jio Infocomm.

“To reinforce present telecom providers and keep continuity of providers, the federal government will maintain the spectrum public sale on Tuesday,” stated the ministry.

The 1800 MHz spectrum band has been allotted Rs 21752.4 crore at reserve value, adopted by the 800 MHz band at Rs 21,341.25 crore.

“That is consistent with the federal government’s dedication to facilitate inexpensive, state-of-art high-quality telecom providers to all of the residents,” the ministry added.

The Division of Telecommunications (DoT) initiated the spectrum course of on March 8.

Spectrum can be assigned for a interval of 20 years. Profitable bidders can be allowed to make funds in 20 equal annual instalments, duly defending the NPV on the rate of interest of 8.65 per cent.

Spectrum acquired via this public sale could be surrendered after a minimal interval of 10 years. There can be no Spectrum Utilization Costs (SUC) for spectrum acquired on this public sale, stated the ministry.

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