India’s biggest telecom spectrum auction will now start from October 1 instead of September 29, as the operators have suggested that there should be a gap of three working days between the mock auction and the actual start of sale of airwaves.
According to a revised notice inviting application (NIA), the auction will start on October 1 and the mock auction will be held on September 26 and 27.
In the queries and responses to NIA that came on August 8, the operators said the current gap between the mock auction and the start of auction was only one working day. “It is suggested that a gap of three working days is provided between the two to take care of any actions to be taken by the auctioneer or the bidders,” Spectrum auction the operators had said.
Earlier, Telecom Secretary J S Deepak had said the government would be open to deferring the spectrum auction by a few days to coincide with a period considered auspicious by the Hindus, as requested by the telecom industry.
The government is making available 2354.55 MHz of spectrum in the upcoming auctions. At the base prices, it would accrue Rs 5.56 lakh crore, which includes the additional Rs 27,000 crore of harmonised spectrum.
The latest spectrum auction is important as the government is putting up large chunks of spectrum for the first time. These airwaves should help remove fragmentation and improve quality of services. Also, rules have been made as bidder friendly as possible.
Other key elements of the auctions are the spectrum usage charge, which has been set at three per cent for the new spectrum being auctioned. This is lower than the five per cent prescribed in 2015.
In upcoming auctions, bidders opting for a deferred payment plan will have to pay 25 per cent of the amount upfront. Bidders for spectrum above the 1-GHz band will have to cough up 50 per cent upfront.
FOR THE BIDDERS
The auction will start on October 1
mock auction will be held on September 26 and 27
2354.55 MHz of spectrum will be available in the upcoming auctions
It would accrue Rs 5.56 lakh crore, which includes the additional Rs 27,000 crore of harmonised spectrum.
This auction is important as the government is putting up large chunks of spectrum for the first time
This auction might help remove fragmentation and improve quality of services