The Indian government is sticking to its plans to auction a limited amount of 2.1-GHz spectrum next month, despite objections from the regulator. It has also approved a higher base price for the frequencies than the regulator advised.
The Department of Telecommunications’ (DoT’s) Telecom Commission has approved a minimum price of 37 billion rupees (€518 million) per MHz for the 2.1-GHz airwaves to be sold via February’s auction, India’s Business Standard reported on Monday.
That is significantly higher than the INR27.2 billion rupees (€375 million) per MHz the Telecom Regulatory Authority of India (TRAI) has been lobbying for.
Last week the TRAI reiterated its opinion on the price of the airwaves, noting that a lower base price should encourage participation in the auction and ensure competitive bidding.
The TRAI also called on the government to sell off 15 MHz of 2.1-GHz spectrum, due to be freed up by the defence ministry, at the upcoming auction, in addition to the 5 MHz it already plans to sell. The regulator believes that selling off just 5 MHz will artificially increase the price of the spectrum. It argues that the state could sell the additional 15 MHz now, and carry out the assignment phase later, once the spectrum becomes available, rather than splitting the auction in two.
However, the Telecom Commission rejected that idea too, the Business Standard said.
The paper noted that at the price set out by the Commission, the sale of those 5 MHz will raise INR185 billion (€2.6 billion) for government coffers. Including the 800-MHz, 900-MHz and 1800-MHz frequencies that are up for sale, the auction should raise INR800 billion-INR1 trillion (€11.2 billion-€14 billion).
According to the report, the cabinet will likely meet this week to make a final decision on the 2.1-GHz process.
