Recommendations on Reserve Price for Auction of Spectrum: TRAI

The Authority had sent its recommendations on ‘Reserve Price for Auction of Spectrum in the 800 MHz Band’ on 22nd February 2014 to the Department of Telecommunications (DoT). On 14th November 2014, the DoT sought clarifications/ reconsideration on some of the recommendations.

After considering the comments given by the DoT, the Authority has furnished its response to the Government. Following are some of the salient points of the TRAI’s response back.

(i) The Authority reiterated it recommendation that the entire available spectrum with the DoT in the 800 MHz band should be put to auction.

(ii) As the PSUs (MTNL/ BSNL) are not using the spectrum in the 800 MHz band, therefore, the Authority has reiterated its recommendations that  “The DoT should take back from MTNL its entire spectrum holding in the 800 MHz band, BSNL should be allowed to retain only one CDMA carrier in all LSAs except in Jammu and Kashmir, Assam and North-East LSAs, where it can retain both the carriers. The DoT should take cback other carriers assigned to BSNL in the 800 MHz band.”

(iii) The chances of participation by a prospective new bidder will be more if it is offered contiguous 5 MHz of spectrum. It would make it feasible to deploy any technology. Therefore, the authority has reiterated its recommendations that “At least one chunk of contiguous 5 MHz spectrum (i.e. 4 carriers) should be carved out before the auction. New entrants must be assigned the earmarked contiguous carriers only.”

(iv) In the light of current data trends and other relevant factors since the valuation exercise was carried out in February 2014, the Authority has decided to carry out fresh valuation recommended reserve price for 800 MHz spectrum for each LSA are as per following Table:

 

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