TRAI chalks out well defined guidelines for the upcoming Spectrum Auction

Department of Telecommunications (DoT)  has issued a new notice that communicates the need for some of the Telecom Service Providers (TSPs) to renew their licences which are set to expire in December and early 2016. DoT has already sent TRAI its recommendations on setting the reserve prices for all the service areas auctioned.

This auction will be extremely crucial for the Telcos as they have to win back the spectrum to ensure consumers won’t be affected. Authorities have also requested to ensure that availability of the additional spectrum before the auction commences. The recommendations are that 1.2MHz spectrum in the 900 MHz band should be withdrawn from BSNL in all the Licensed Service Areas (LSAs) and instead BSNL should be assigned 1.2MHz in the 1800 MHz band restricted to LSAs wherein the spectrum holding in that band is less than 3.8MHz.

The recommendations also suggest that the unused spectrum in the defence section should not be kept idle. The LSAs wherein the spectrum assigned to defence in the 1800MHz band is more than 20MHz, DoT is expected to co-ordinate with the Defence for the allocation of the same.The Entire 2 x 60 MHz in the 2100 MHz band should be put up for commercial use.

Good part is that the Government is expected to reveal the roadmap of the spectrum in the 700 MHz band before conducting the upcoming auctions for the 900/1800 MHz band.

TRAI also made it clear that the auctions should commence only once there’s enough visibility on the availability of the 2100 MHz airwaves which are generally employed for 3G services. The reserve prices will be 10% premium than the last bid that won the auctions. TRAI has justified the hike in the reserve price to the increase in the data usage. If we are to look into the larger picture it is evident that TRAI wants the Government authorities to pool in and collectively ensure that the auction is a smooth process for everyone.

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13 Comments on "TRAI chalks out well defined guidelines for the upcoming Spectrum Auction"


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APpL€ LoVeR™
October 20, 2014 9:52 am 9:52 AM
Now it became more clear that THERE IS NO CHANGE OF BAND FOR BSNL FROM 900MHz to 1800MHz.The proposal by TRAI is like that 6.2MHZ spectrum in 900MHz of BSNL should be reduced into 5MHz in 18 Circles by relinquishing 1.2 MHz of efficient 900 MHz spectrum in some 18 circles (barring Punjab) and assign 1.2 MHz of airwaves to the company in the less efficient 1,800 MHz band in Gujarat, West Bengal and Rajasthan circles where BSNL’s spectrum holdings are below 3.8 MHz.This proposal yet to be accepted by DoT and Telecom Minister Sri.Ravi Shankar Prasad(so this proposal acceptance… Read more »
October 18, 2014 2:13 pm 2:13 PM

to TT :
BSNL ought to be forced to relinquish a “part of the spectrum” it holds in the 900MHz band in 18 circles and be given compensatory frequencies in the 1800MHz band in Gujarat, Rajasthan and Bengal.

October 17, 2014 2:20 am 2:20 AM
Spectrum auction seems to be a never ending process of the TRAI and DOT just like elections keep on happening all the year round in the same manner Spectrum auctions keeps on happening every year now and then. i beleive this is hampering the growth of the telecom sector which is getting crushed and not able to generate profit and sustain in the market only the AVOID is generating the profit and rest of the operators are always engaged in preparing documents for the auction process and spend all their money on buying the scarce spectrum and dont know what… Read more »