Telecom Commission fixes base price for auction of 800 MHz spectrum

telecom-tower-indiaThe Telecom Commission (TC) has fixed Rs 3,646 crore per MHz as the base price for the auction of 800 MHz spectrum, which is slated for February next year.
The Department of Telecom (DoT) had suggested a base price of Rs 3,646 crore per MHz, which is 17 per cent higher than what the regulator TRAI had recommended. The price of 900 MHz and 1800 MHz as recommended by the DoT committee could not be ascertained. The Telecom Commission’s (TC) decision will now be placed before telecom minister Ravi Shankar Prasad for final approval and after that cabinet might be approached for certain issues, media reports said quoting sources.

“The TC has given approval to DoT’s committee recommended reserve price with some conditions,”a report said. The TC on Monday discussed the revised recommendations submitted by sectoral regulator TRAI on the pricing of 800, 900 and 1800 MHz bands. The Telecom Regulatory Authority of India has reiterated its recommendations for 900 and 1800 Mhz bands, while it had increased the base price by 15 per cent for 800 MHz band.

The next round of spectrum auction would be held in February and the government is estimated to garner at least Rs 9,355 crore from sale of spectrum. Most of the spectrum which is proposed to be put up for sale is being used by Airtel, Vodafone, Idea Cellular and Reliance Communications across various parts of the country. These companies have to buy back spectrum to continue their operations as their licences are about expire in 2015-16 for certain areas.
The Telecom Regulatory Authority of India (TRAI) has also released a consultation paper on pricing of 2100 MHz band, used for offering 3G services, as the government plans to auction this band along with 800, 900 and 1800 MHz in February.

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9 Comments on "Telecom Commission fixes base price for auction of 800 MHz spectrum"


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December 10, 2014 8:16 pm 8:16 PM

And here comes the end of CDMA technology.

December 10, 2014 7:45 pm 7:45 PM
Its not like that. CDMA operator had not paid hefty amount as license fee but still they were offering internet services(EVDO) at cost higher than that of 3G services.. They could not attract customers by making CDMA EVDO Rev.A (speed=3.1 Mbps) which is slightly less than 3G basic speed of 3.6 Mbps. After paying heavily for 3G licenses 1GB data offered by operators at average price of ?250.00 where as even by paying 10% of license fee, hopeless & greedy CDMA operators kept charging as high as Rs.650 for 1GB untill 3G launched and price came down to ? 250.00.… Read more »
Kanaga Deepan N
December 11, 2014 1:25 am 1:25 AM

+1… Very TRUE… I remember the days when I have to pay Rs650+ Taxes for 1GB EVDO + 1x unlimited, when there is no 3G in GSM… GSM operators paid huge amounts for 3G, but CDMA operators enjoy EVDO without any special auction… Now even with such good powerful penetrating 800MHz spectrum (and can launch 4G too in future), they are shedding crocodile tears and want price of 1800MHz… Shameless greedy operators…

December 11, 2014 3:45 pm 3:45 PM

The government is not collecting any spectrum fee from the CDMA operators for increasing the speed of the mobile networks. So this spectrum fee is fair and it should have been Rs.4000 crore for 1 MHz of spectrum.

December 11, 2014 3:42 pm 3:42 PM

Well said.

Using the single spectrum, they are providing CDMA 1x 2000 data (I think 160 Kbps maximum speed), CDMA rev.A, CDMA rev.B and even CDMA rev.C (may be in future who knows?). But GSM operators must pay dizzying spectrum fee for 2G, 3G, 4G, WiMAX and so on !!!!. CDMA operators pay nothing to the government on the top of the table (who knows some thing will happen under the table !!!) for upgrading their network. But look the condition of the GSM operators in this post. What the hell is going on in the telecom industry?.

December 11, 2014 12:22 am 12:22 AM

Agreed….cdma technology could be famous by setting voice calls & high speed data at resonable prices, but these companies like Tata,Rcom and MTS are destroying their own businesses.

December 10, 2014 5:04 pm 5:04 PM

Base price is not at all good for the CDMA industry.