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

Mobile spectrum auction: The Department of Telecom (DoT) in India has announced that the upcoming spectrum auction for mobile services is scheduled to begin on May 20. The 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 the right-to-use frequencies held by telecom companies expiring this year.The DoT initiated the spectrum auction to enhance existing telecom services and ensure service continuity. The Notice Inviting Applications (NIA) was released, outlining the details of the auction. The 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.The cumulative reserve price for the 10,523.15 MHz spectrum up for auction is set at Rs 96,317.65 crore. Interested parties have until April 22 to submit their applications, and the final list of bidders will be released on May 9. The assigned spectrum will have a 20-year tenure, and successful bidders can make payments in 20 equal annual instalments, protecting the Net Present Value at an interest rate of 8.65 per cent.Additionally, the DoT allows the option to surrender the acquired spectrum after a minimum period of ten years. This marks the second spectrum auction following telecom reforms implemented in September 2021. Similar to the previous auction in 2022, there will be no spectrum usage charges (SUC) for the spectrum acquired in this auction. Successful bidders are not required to submit financial bank guarantees or performance bank guarantees.With PTI Inputs

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

The DoT initiated the spectrum auction to enhance existing telecom services and ensure service continuity.

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