India targets more than Rs 80,000 cr revenues from 2G, 3G auctions

The 20-year licence for 900 MHz for Bharti Airtel and Vodafone India for Delhi, Mumbai and Kolkata circles lapsed, a month ago. But the same time, department of telecommunications (DoT) has approved to offer a 45-day extension (till January 14, 2015) to Bharti Airtel and Vodafone for migrating to new frequencies. So that users of the both telecom service providers will not impact till new licences are allotted.

3G Map

3G Map

Recently, the Supreme Court of India (SCI) had rejected Vodafone India’s plea to extend the validity of the operator’s licences in the Maharashtra, Gujarat, Haryana, Kerala, Rajasthan and Uttar Pradesh (East) circles. With this, the next round of auctions for spectrum is compulsory for mobile operators – Airtel, Vodafone, Idea and Reliance Communication – as some of their licences are set to expire in 2015-16 and the government of India estimated revenues will be more than Rs 80,000 (Rs 64840 cr excluding 2100 MHz spectrum) of which Rs 16000 cr from 5 MHz of 3G spectrum in the 2,100 MHz band along with 2G bands (800, 900 and 1,800 MHz) in the auctions planned

For 2100 MHz, Union cabinet said that intent to put 2100 MHz to simultaneous auction may be announced along with auction of other bands. Details of this will be announced later on. The reserve price for 800 MHz is at Rs 3646 crore pan-India per MHz and for 900 MHz at Rs 3980 per band pan India excluding Delhi, Mumbai, Kolkata, Jammu & Kashmir.

Interestingly, a few days ago, the telecom regulator, Telecom Regulatory Authority of India (TRAI) has recommended 3G spectrum base price at Rs 2,720 cr per MHz pan-India for to be auctioned in February next year. As the Narendra Modi government planned to conduct 3G spectrum auction along with 2G spectrum sale in 2015. It had asked telecom regulator to expedite the base price recommendations for it.

“Department of telecommunications (DoT) requested Trai to expedite the process for its recommendations on the reserve price of 2100 Mhz band and related issues so that the auction of spectrum in this band could be conducted along with the auction of spectrum in the 800/900/1800 MHz bands scheduled in February 2015,” said the regulator, a month ago.

According to a presentation by DoT to Telecom Minister Ravi Shankar Prasad on November 13, and it expects to start bidding for spectrum by February 23.
Lastly, 5 MHz of spectrum in the 2100 MHz band used for 3G services in 17 circles, according to the department of telecommunications (DoT).

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15 Comments on "India targets more than Rs 80,000 cr revenues from 2G, 3G auctions"


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arun davis
January 12, 2015 2:40 pm 2:40 PM

Hope Aircel will Re-launch their 3G in kerala

January 6, 2015 6:49 pm 6:49 PM

This time expecting Tata Docomoto.invest more to stabelize the network in circles like Mumbai. Hope they will launch their 3G atleast in Mumbai.

January 7, 2015 11:52 am 11:52 AM

Spectrum costs in Mumbai are too high for docomo to bid for. As Esmail, its very likely that Idea will outbid them if they take part. Rest, no one else would be interested in mumbai circle as Vodafone airtel and reliance already has spectrum but they may consider increasing the amount.

January 6, 2015 8:54 pm 8:54 PM

That is unlikely, there are higher chances of idea outbidding docomo for the 2100MHz block in Mumbai.
The only way Tata can launch 3G in Mumbai is by riding on Reliance network just like Aircel is doing.

Adithya Vardhan
January 7, 2015 12:15 pm 12:15 PM

Is Aircel 3G really available in Mumbai on ICRA? I couldn’t see any 3G packs for Mumbai circle in the Aircel website

January 7, 2015 11:39 pm 11:39 PM

It is available, go enquire at the nearest Aircel gallery.

Dr Lambinagh
January 6, 2015 5:17 pm 5:17 PM

Quiet forum, no one is really speaking up. THIS IS THE DAMN REASON WE CUSTOMERS R GETTING FLEECED. Telcos have to spend so much money on raw material (spectrum) How r they expected to spend on network upgradation and provide us customers a better experience. Govt is screwed up, DOT is messed up and the current govt wants to just fill its coffers and destroy the telecom industry. very very sad.

January 6, 2015 5:59 pm 5:59 PM

*The reason why the forum is quiet is because this is not the first time we are witnessing such a move. The government has most of the times used cheap tricks to boost up spectrum prices these tricks include making less spectrum available for auction and also refraining from providing a clear timeline as to when what type of spectrum will be auctioned. The government has been doing this for years now and most of us over here are used to seeing such cheap tricks,so we just ignore. :-P. Are you new to this forum ?

January 6, 2015 8:51 pm 8:51 PM

Exactly Rama, we’ve grown accustomed to hearing such dull news day after day.. One day they show a glitter of hope saying the defence ministry has agreed on the swap of 15MHz 3G airwaves in all 22 circles and we will be auctioning all 330MHz in the upcoming auction and now they say they only have 85MHz in the form of 5MHz in 17 circles to auction. Its best to take a back seat and watch the show.

January 6, 2015 11:02 pm 11:02 PM
*That’s exactly why I don’t track the telecom industry. First of all corruption is too high in this industry. I mean how does a telecom operator like BSNL which has pan India 900 Mhz spectrum along with pan India 2100 Mhz spectrum and also 1800 Mhz spectrum provide such low quality services in certain areas. There are so many times I personally feel DoT and TRAI play double games but I refrain from commenting. For example TRAI has set such a high base price for spectrum in 800 mhz spectrum citing the fact that they can be used for LTE… Read more »
January 7, 2015 10:08 am 10:08 AM

All your points are valid, though if the extra 15MHz were to be put up for sale, I would expect Jio to have bid for 2 blocks Pan India so as to be able to cater to the people who do not own LTE capable handsets, and the same spectrum could probably 10 years down the line be used for LTE once the ecosystem had matured. Given that AVoId will be spending most of their cash reserves in buying back 900MHz and Ambani having deep pockets and ambition, that is what I would foresee.

January 7, 2015 11:07 am 11:07 AM
*Yes I did not see that coming. In case Jio plans on bidding 10 Mhz nation wide then in case of circles like TN. i guess Airtel and Vodafone would have acquired 5 Mhz each and Idea must have withdrawn its bid given they would have to spend so much on 900 Mhz and also TN is one of their weakest circles. The main reason I wanted a lot of spectrum to be put up for auction in the 2100 Mhz band was so that incumbent players of AVOID in their respective 3G circles could further extend their spectrum holding… Read more »
January 7, 2015 12:08 pm 12:08 PM

Just a small suggestion Rama. Sorry, please don’t take it otherwise. As you are writing big essay like comments, please use Commas, otherwise it’s tough to read. Or, TT should reduce the FONT size of the comments section.

Dr Lambinagh
January 6, 2015 6:32 pm 6:32 PM

Not new but check this blog a few times. Interesting things r happening. Can’t wait to get on 4g. I know it will be limited at first but looking forward to the experience.