Why spectrum auction in 900 MHz and 1800 MHz bands will hit roadblock

TRAI on Wednesday announced key recommendations for auctioning telecom spectrum in the 900 MHz and 1800 MHz bands.

If the government accepts TRAI recommendations, the telecom spectrum auction in the 900 MHz and 1800 MHz bands will face substantial delays. The TRAI recommendations open up windows for fresh discussions on Defense spectrum, 2100 MHz band and 700 MHz band. TRAI wants DoT to fix major issues before the government goes for auction.

The NDA government is looking at mobilizing funds from spectrum auction during the current fiscal.

TelecomLead.com is sharing the recommended price list and key recommendations from the telecom regulator.

ALSO READ: TRAI reserve pri­ce for 1800 MHz and 900 MHz spectrum auction announced

TRAI wants DoT (department of telecommunications) to take back 1.2 MHz spectrum in 900 MHz band from BSNL from all the LSAs where licenses expire in 2015-16 except in Punjab. In lieu, BSNL should be assigned 1.2 MHz in the 1800 MHz band only in those LSAs where its spectrum holding in that band is less than 3.8 MHz in this band i.e. in Gujarat, Rajasthan and West Bengal.

DoT should take a completely fresh look at the implementation of E-GSM band.

Unused spectrum in the Defense band should not be kept idle. The DoT in coordination with Defense should fix a time frame for migration of Defense from commercial band to Defense band. If this is not possible, then that much spectrum should be kept reserved for Defense in the Defense band which would make its total spectrum holding 20 MHz in the 1800 MHz band.

 

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In some LSAs viz. Andhra Pradesh, Tamilnadu, Kerala, Madhya Pradesh, Bihar and Orissa, where there is nil or negligible spectrum assignment to Defense in both commercial and Defense band, only 5 MHz can be kept reserved for them for any future requirement. The rest of the vacant spectrum in the Defense band should be put to auction.

In the LSAs, where spectrum assigned to Defense in the 1800 MHz band is more than 20 MHz, DoT should coordinate with Defense for the vacation of spectrum held by Defense in excess of 20 MHz.

The entire 2×60 MHz in the 2100 MHz band should be made available for commercial use. Defense may be assigned spectrum in the 1900 MHz band (1910-1920/1980-1990 MHz). The Authority also

Auctions in this band should be carried out along with the auctions in 900/1800 MHz band.

The Government should immediately take action on TRAI recommendations of February 2013 on the adoption of APT700 in the country.

The Government should also announce the roadmap for the auction of spectrum in 700 MHz band. This should be done before the conduct of the upcoming auctions in 900/1800 MHz band.

TRAI reiterates its recommendation that the frequency rearrangement in the same band, from within the assignments made to the licensees, should be permitted amongst all licensees irrespective of whether the spectrum is liberalized or not. However, the use of spectrum shall be liberalized only if the entire spectrum holding of a licensee in a particular band is liberalized.

All efforts should be made to make available spectrum in contiguous form. Nevertheless, the entire available spectrum should be put to auction.

Spectrum should be put to auction in a block size of 2×200 KHz in both the 900 and 1800 MHz bands.

In the 900 MHz band, the bidders should be required to bid for a minimum of 2×3.6 MHz in those LSAs where spectrum being put to auction is 10 MHz or more and 2×2.4 MHz in the remaining LSAs.

In the 1800 MHz band, the bidders would be required to bid for a minimum of 2×0.6 MHz spectrum.

A fresh valuation of 1800 MHz spectrum for all 22 LSAs is the preferred way to initiate the process of determining valuation and reserve price of 1800 MHz spectrum for the forthcoming auction.

The auction should be carried out only after a clear roadmap is available for vacating spectrum in 2100 MHz band from Defense and in 900 MHz band from BSNL.

The forthcoming auction should be scheduled after the above issues are resolved and auction in the 800 MHz, 900 MHz, 1800 MHz and 2100 MHz band be conducted simultaneously.

Baburajan K
[email protected]