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Cabinet approval means DoT can invite applications to take part in upcoming spectrum auction.
The Indian cabinet has approved the spectrum usage charge proposed by the Telecom Commission last week, the government announced on Wednesday.
As a result, the way is clear for prospective bidders to be invited to apply to take part in the Department of Telecommunications’ (DoT’s) upcoming spectrum auction, the state confirmed.
Spectrum acquired via the auction, which could take place in September, will be charged at 3% of the operator’s adjusted gross revenue (AGR), excluding revenue from wireline services, the cabinet ruled. The state is selling off frequencies in the 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2.1 GHz, 2.3 GHz and 2.5 GHz bands.
Spectrum that is already in the hands of operators, including broadband wireless access (BWA) frequencies allocated in 2010, will be billed based on a weighted average charge with a minimum level of 3% of AGR, the state explained. The weighted average will be determined by operator and by circle.
The SUC question was the last outstanding major issue to be determined prior to the start of the new auction process.
According to an Indian press report last week, the auction can take place 45 days after the cabinet’s approval, which means it could begin in the second half of September.
It will be a closely-watched process, with reserve prices suggesting the government could raise as much as 5.44 trillion rupees (€71 billion), while analysts believe the final total will be considerably lower, due to selective bidding from operators.
Telenor’s Indian unit has already said it will not take part and there are doubts over how much market leader Bharti Airtel plans to spend.
Meanwhile, this week it emerged that state-owned incumbent BSNL has also decided not to participate, while sister company MTNL has yet to make a decision.
