Spectrum auction of eight bands worth Rs 96,317 cr to start from May 20

Mobile spectrum auction: Department of Telecom (DoT) in India has announced that upcoming spectrum auction for mobile services is scheduled to begin on May 20. government plans to auction eight spectrum bands for mobile phone services, with a base price set at Rs 96,317.65 crore. This auction includes spectrum held by certain companies undergoing insolvency processes, as well as right-to-use frequencies held by telecom companies expiring this year.

DoT initiated spectrum auction to enhance existing telecom services and ensure service continuity. Notice Inviting Applications (NIA) was released, outlining details of auction. available spectrum spans across various frequency bands, including 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz, and 26 GHz.

cumulative reserve price for 10,523.15 MHz spectrum up for auction is set at Rs 96,317.65 crore. Interested parties have until April 22 to submit ir applications, and final list of bidders will be released on May 9. assigned spectrum will have a 20-year tenure, and successful bidders can make payments in 20 equal annual instalments, protecting Net Present Value at an interest rate of 8.65 per cent.

ditionally, DoT allows option to surrender acquired spectrum after a minimum period of ten years. This marks second spectrum auction following telecom reforms implemented in September 2021. Similar to previous auction in 2022, re will be no spectrum usage charges (SUC) for spectrum acquired in this auction. Successful bidders are not required to submit financial bank guarantees or performance bank guarantees.

With PTI Inputs