The union cabinet, headed by PM Narendra Modi today gave principal approval for DOT's proposal to auction spectrum in 800, 900 & 1800 MHz bands. Government expect to fetch a whooping Rs 64,840 crore from largest spectrum auction in Indian history.
The cabinet approved proposed price band of Rs 3646 Cr for pan India spectrum in 800Mhz band, Rs. 3980 Cr for pan India(excluding Delhi, Mumbai, Kolkatta, and Jammu & Kashmir) in 900Mhz and Rs 2191 cr for pan India(excluding Maharashtra & West Bengal) in 1800 MHz band. Decision to auction 2100Mhz simultaneous with this auction will be considered after defense department vacates it.
A total of 380.75MHz of spectrum across 800, 900 & 1800 MHz bands will be put for sale. Out of which 103.75 MHz in 800 MHz in all circles, 177.8 MHz in 900Mhz in 17 circles and 99.2 MHz in 1800 MHz in 15 circles. The 900Mhz spectrum band are currently held by Airtel, Idea, Vodafone and Reliance in different circles which are set to expire in 2015-16 are put to auction.
All terms including Payment, eligibility criteria and auction objectives will be same as of February 2014 auction. DOT has announced last date for submission of application as February 2 and bidders will be pre-qualified by February 13. DOT expect to start the auction on February 23. Telecom Minister Ravi Shankar Prasad later announced that government intends to auction 3G spectrum in 2,100 MHz simultaneously.