Spectrum auction for 2016 and main facts

QoS to improve after spectrum auction
TelecomLead.com is presenting five key points that emerged from the spectrum auction price finalized by India’s cabinet.

First, India is yet to decide the date for spectrum auction.

Second, the spectrum auction – probably in July – will be the country’s largest spectrum auction to date.

Third, India targets to mobilize a whopping $85 billion at the approved reserve price. India received $17 billion through spectrum auction in 2015.

# 700 MHz band is unaffordable to almost all the players
# Bidding in 1,800 MHz, 2,100 MHz, 2,300 MHz will be exciting
# 2,500 MHz will be not so exciting
# Both 800 and 900 MHz are non-contiguous in nature and not very exciting

Fourth, since India government has not firmed its policy on reducing call drops, the release of fresh spectrum will not assist 900 million plus mobile subscribers.

Fifth, India telecom ministry is yet to take any decision on spectrum usage charges. TRAI has suggested spectrum usage charge of 1 percent of revenues for 2,500 MHz and 3 percent for all the other bands.

Sixth, the government is learnt to have approved spectrum base price suggested by telecom regulator TRAI.

Seventh, TRAI recommended a pan-India reserve price of Rs 2,873 crore for 1,800 MHz, Rs 3,341 crore for 900 MHz, Rs 5,819 crore for 800 MHz, Rs 3,746 crore for 2,100 MHz, Rs 11,485 crore for 700 MHz, and Rs 817 crore each for 2,300 MHz and 2,500 MHz bands.

Eighth, India will try to auction more than 2,300 MHz of airwaves in seven bands — 700 MHz, 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz, 2,300 MHz and 2,500 MHz. In 2015, 470.75 MHz was on the block. India sold 390 MHz in November 2012 and 426 MHz in February 2014.

Finally, the Indian telecom industry welcomed the availability of the huge quantum of spectrum. “This is the first time so much of new bands are going for auctions. Earlier, it was mostly renewal,” Rajan S Mathews, director general of Cellular Operators’ Association of India, told IANS.