Indian telecom regulatory TRAI on Wednesday recommended spectrum reserve price for both 1800 MHz and 900 MHz airwaves.
TRAI suggested about 10 percent higher reserve price for auction of airwaves in the 1800 MHz band based on the discovered price at the February auction.
The base price for 1800 MHz spectrum has been pegged at Rs 2,138 crore per MHz, while it would be Rs 3,004 crore per MHz for 900 MHz band in 18 circles.
The telecom regulator has recommended 50 percent discount on reserve price for the Northeast LSA.
Based on the base prices recommended by TRAI, the government will auction 104 MHz airwaves in the 1800 MHz band and 184 MHz in the 900 MHz band.
The auctions will be held later this year, as 29 service licenses of top telecom players such as Idea Cellular, Vodafone, Bharti Airtel and Reliance Communications are coming up for renewal between December 2015 and April 2016 in telecom circles like Maharashtra, Gujarat, Andhra Pradesh and Karnataka.
Some media reports said the NDA government can expect to mobilize at least Rs 74,000 crore in non-tax revenues from telecom spectrum action this financial year.
Finance minister Arun Jaitley had estimated revenues from telecom license fees, one-time spectrum charges and spectrum usage charges at Rs 45,471 crore.
Though some of the Indian mobile operators bagged 1800 MHz spectrum at the February spectrum auction as a backup, the next round will be crucial for all the four top service providers to continue operations and roll out 4G services. Vodafone, Uninor and Videocon are aiming for 4G launches on FD-LTE technology.
If the government decides to release idle spectrum currently lying with the defense forces in the 2100 MHz band for commercial use and auction it along with the 900 MHz and 1800 MHz airwaves, the revenue mobilization for the government would be much higher.
The telecom regulator has recommended releasing 1.2 MHz spectrum held by BSNL in the 900 MHz band, barring those in Punjab, which could also be put up for auction.
TRAI reiterated its earlier recommendation to allow use of 800 MHz airwaves by GSM operators without keeping it exclusively for CDMA operators.
It has also sought a roadmap for the 700 MHz band.
TRAI said in consultation with finance and defense minister Jaitley, the telecom department must auction airwaves in all bands at one go. Industry estimates show in case airwaves in all the five bands are put up for auction, the revenue potential of the government would be about Rs 2,00,000 crore.
While bidding for both 900 MHz and 1800 MHz airwaves will be held in blocks of 200 KHz, it would be for at least 3.6 MHz in those 900 MHz band circles where more than 10 MHz is available and 2.6 MHz in those circles with less than 10 MHz. In the 1800 MHz band, bidders will have to opt for a minimum of 0.6 MHz.
TRAI did not suggest auction for spectrum in Maharashtra and West Bengal circles, where spectrum is available partially. However, it has suggested 30 percent discount in reserve price in Rajasthan owing to partial availability.
The regulator allowed telecom operators to undertake barter arrangements to make airwave usage contiguous and efficient.
