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Cabinet finalises reserve price for 2G spectrum

The Union Cabinet today finalised the reserve price for 2G spectrum auction. The reserve price for 800 MHz is at Rs 3646 crore pan-India per MHz and for 900 MHz at Rs 3980 per band pan India excluding Delhi, Mumbai, Kolkatta, J&K.

The Union Cabinet today has approved the proposla to auction 800 MHz, 900 MHz and 1800 MHz spectrum. It has aproved the reseve price for  800 MHZ spectrum at  Rs3,646 Cr Pan-India Per MHz and 900 MHZ spectrum at Rs 3,980 Cr.

The Cabinet also approved reserve price for 1,800 MHz spectrum at Rs 2,191 Cr.

The spectrum to be put to auction is 103.75 MHz in 800 MHz band in all service areas, 177.8 MHz  in 17 licensed shared access (LSAs) in 900 MHz band and 99.2 Mhz in 15 LSAs in 1800 Mhz band. Thus government would totally auction 380.75 MHz in 800,900 & 1800 MHz is being put to auction.  

The payment terms, eligibility criteria and auction objectives shall be as in the previous auction of Feb 2014.

Cabinet also decided that intent to put 2100 MHz to simultaneous auction may be announced along with auction of other bands. Details of this will be announced later on.
The estimated revenues from this auction are Rs 64,840 cr (excluding 2100 MHz spectrum) of which Rs 16000 cr is expected to be realised in the current financial year that is FY15.

Reacting to the above news, Sanjay Kapoor, chairman, Micromax said 2G spectrum is of paramount importance for operations of telecom companies, whereas 3G spectrum would only help ramp up the operations, so was not as vital as 2G.

According to him if ‘Digitial India’ has to be bought to life then there is a need for a lot more spectrum and infrastructure. He is a bit disappointed with the new government and said the change in government has not resulted in any policy changes.

According, to him in all likelihood the sector will have to pay dearly for the spectrum. Adding that tough policies like ban on spectrum sharing is not helping the industry.

Jaideep Ghosh, Partner, KPMG said approving prices proposed by Telecom Commission was on expected line s. However, there is a need for a concrete spectrum roadmap for the new few years, he added.

For the entire interview watch video


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