News
Sale process delayed to provide bigger gap between mock auction and auction proper, avoid clash with ‘Shradh’ period.
As expected, India has delayed the start of its upcoming spectrum auction until the beginning of October, it emerged this week, giving telcos more time between the end of the mock auction and the start of the auction proper.
A revised notice inviting applications (NIA) issued by the Department of Telecommunications (DoT) on Monday lists the start date as 1 October. Under the original timetable, published earlier this month, the process was due to begin on 29 September.
Documents shared by the DoT reveal that prospective bidders had requested a larger gap between the trial auction – due to be held on 26 and 27 September – and the real auction in order to "take care of any actions to be taken by the auctioneer or the bidders."
In addition, according to various local press reports, operators also requested the auction be postponed because 29 September falls during the ‘Shradh’ period, which sees Hindus pay homage to their ancestors. It is considered an inauspicious time to begin new work.
Up for grabs in October are 2,200 MHz of frequencies across the 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2.1 GHz, 2.3 GHz and 2.5 GHz bands. Licences will be valid for 20 years; rollout obligations vary by frequency band.
The government has set its sights on raising a minimum of 5.44 trillion rupees (€71 billion) from the auction; however, it is doubtful whether that sum is achievable, and there are expected to be some big names missing when the sale eventually begins.
