India’s Department of Telecommunications (DoT) on Tuesday postponed its upcoming spectrum auction until 4 March.
The sale of frequencies in the 800 MHz, 900 MHz, 1800 MHz, and 2.1 GHz bands was due to begin on 25 February, with a deadline of 19 January for seeking clarifications on the notice inviting application (NIA). That has now been pushed back to 2 February, while final applications to take part in the auction are now due by 16 February, instead of the earlier deadline of 6 February.
As a result, prospective bidders have longer to familiarise themselves with the rules of the auction.
The DoT did not disclose the cause of the delay; however, it may be linked to the lack of agreement around the base price for the 2.1-GHz spectrum.
The Telecom Regulatory Authority of India (TRAI) recently recommended the government set a reserve of 27.2 billion rupees (€375 million) per MHz and urged the DoT to sell off 15 MHz of 2.1-GHz spectrum, due to be freed up by the defence ministry, at the auction, in addition to the 5 MHz already on the block.
Instead though, the DoT has approved a benchmark fee of INR37 billion (€518 million) per MHz and put just 5 MHz on sale, a move the TRAI claims will artificially inflate its price.
India’s cabinet has yet to approve the base price.
As for the other frequencies, the DoT has set a reserve price of INR36.46 billion (€480 million) per MHz for pan-India frequencies in the 800 MHz band. For pan-India 900-MHz spectrum excluding Delhi, Mumbai, Kolkata, and Jammu and Kashmir, the reserve is INR39.8 billion. Finally, a reserve of INR21.91 billion has been established for pan-India 1800-MHz spectrum excluding Maharashtra and West Bengal.
