Union Cabinet Approves Spectrum Auction at Base Price of Rs 96,317.65 Crore

The Union Cabinet, headed by Prime Minister Narendra Modi, has given the green light to a proposal from the Department of Telecommunications for conducting a spectrum auction. This auction aims to assign spectrum to successful bidders for the provision of telecom services, with the government emphasising that additional spectrum will enhance the quality and coverage of telecom services for consumers, as per an official statement.

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Also Read: Airtel Pays DoT to Continue Using Spectrum in Circles Where it was Expiring Soon

Key Details of the Spectrum Auction

The spectrum auction will encompass various frequency bands, including 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz, and 26 GHz. The spectrum will be available for a validity period of 20 years. A substantial 10,523.15 MHz of spectrum is being offered, with a valuation pegged at Rs 96,317.65 crore at the reserve price.

“Existing telecom service providers can continue use of spectrum by paying auction-determined prices during the interim period to prevent disruption in telecom services,” Centre said. “More than 4.2 lakh base stations have been deployed in 14 months, covering 740 districts.”

Committee of Secretaries (CoS) Established

Additionally, the Cabinet has formed a Committee of Secretaries (CoS) to examine the re-farming of existing spectrum usage. This move aims to boost spectrum availability to meet the future demands of telecommunication services effectively.

Spectrum Allocation for Rail-Based Transit Systems

In another decision, the Cabinet has approved a proposal for spectrum allocation in the 700 MHz band to cater to the requirements of rail-based urban/regional transit systems such as the NCRTC (National Capital Region Transport Corporation) for Automatic Train Protection (ATP) systems and operations. Given the additional requirement for the national rollout of Kavach, an additional 5 MHz of spectrum in the 700 MHz band will be reserved for Indian Railways. TRAI has already floated a consultation paper titled “Consultation Paper on Assignment of Additional Spectrum to Indian Railways for its Safety and Security Applications” just recently.