NEW DELHI: India’s next spectrum auction will get underway on May 20 when the government will put around 10,523.15 MHz of 5G airwaves worth ₹96,317.6 crore in eight key bands on sale. The department of telecommunications (DoT) on Friday set the ball rolling for the next 5G spectrum sale by issuing the notice inviting application (NIA), which outlines the auction rules, seeking participation from the telecom firms.
Airwaves in the 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz and 26 GHz bands will be put on sale. Premium 5G airwaves in the 700 MHz band, though, are not being auctioned this time around as supplies have run out.
The government has also decided against auctioning airwaves in the 600 MHz band in the upcoming sale, possibly because more studies need to be done to ensure there is no interference with satellite operations going forward. As per the NIA, companies seeking to buy spectrum can apply till April 22. Subsequently, a mock auction will be conducted on May 13 and 14, following which the actual sale will start on May 20.
Objectives of the auction include obtaining a market-determined price of spectrum through a transparent process and stimulating competition in the sector. As per the eligibility criteria, while it is mandatory for a company to have the UASL/UL permit to participate in the auction, any prospective new entity or firm can also bid for airwaves by giving an undertaking that it will obtain a UL (unified licence).
Existing UASL/UL permit-holders with access services authorisation licences shall be treated as ‘new entrant’ in those licence service areas (LSA) in the airwave bands in which they don’t currently hold spectrum.
Further, companies whose licences and spectrum are expiring in 2024, and who don’t hold any spectrum (bought through previous auctions) in a particular circle or band will also be treated as “new entrants” in the upcoming sale.
Under the spectrum auction rules, DoT has pegged the net worth eligibility for bidders at ₹100 crore per LSA with Jammu & Kashmir and Northeast circles being exceptions where the net worth requirement is lower at ₹50 crore.
The net worth criteria, though, is only applicable in case of ‘new entrants’ and not for existing licensees.
“Annual spectrum auction calendar is a major reform. Now, telecom service providers will get the opportunity to buy spectrum regularly in a transparent way,” communications minister Ashwini Vaishnaw said after the issue of the auction rules.
In the last spectrum sale in July 2022, which was India’s maiden 5G auction, the government had mopped up over ₹1.5 lakh crore. It had offered over 72 GHz of airwaves for 20 years across 10 5G bands, worth ₹4.3 lakh crore at reserve prices.
Source: The Economic Times
