India's telecom regulator, Telecom Regulatory Authority of India (TRAI) finally today proposed a base price for auction of 2G spectrum that is 7th time higher than the 3G auction price of 2010. The value of 2G spectrum has been pegged at Rs 7 lakh crore.
According to TRAI's recommendation, For the the 900 mega hertz band (2G) a base price at Rs 7000 crore, which is twice the base price set for a 3G spectrum. For 700 megahertz band, it has been set at Rs 14,000 crore which is 4 times the 3G reserve price.
TRAI recommends auction of 30 Mhz of 700 Mhz band, 10 Mhz of 800 Mhz band, 15 Mhz of 900 Mhz band, 15 Mhz of 1800 Mhz, 5 Mhz of 2,100 Mhz and 20 Mhz of 2300 Mhz. All spectrum should not be auctioned in one go. As a start, 5 Mhz of spectrum could be auctioned initially. Auctions could be phased out across three years.
TRAI recommends that the refarming of spectrum in the 800 MHz and 900 MHz bands should be carried out progressively at an early date but not later than the due date of renewal of the licences. The spectrum available with the service providers in the 900 MHz band should be replaced by spectrum in the 1800 MHz band, which should be charged at the price prevalent at the time of refarming.
The Authority recommends that all spectrum to be assigned through the auction process in future shall be liberalised. In other words, spectrum in any band can be used for deploying any services in any technology.
TRAI recommended that, Auction of spectrum in the 900 MHz band (2G) , auction should be conducted in the first half of 2013-14 preferably in the first quarter so that there is adequate time for deployment as and when 900 MHz spectrum is available by November, 2014.
Balance Spectrum in 1800 MHz band should be done in the first half of 2013-14, Auction of Spectrum in 2100 MHz band to be carried out in the second half of 2013-14. While auction of available spectrum in 700 MHz band in the first half of financial year 2014-15 and Auction of additional spectrum in 2300 MHz band in the second half of financial year 2014-15.
TRAI recommends the following Reserve Price for spectrum in different bands - Circle wise detail :