DoT mulls abolition of bid withdrawal option in next auction

Department has asked Telecom Commission to consider the issue as quantum of available contiguous spectrum is less the 5MHz

Telcos may not get the option to withdraw their bids in the next auction if they do not get contiguous 5MHz spectrum, unlike the earlier ones.

The Department of Telecommunications (DoT) has asked the Telecom Commission to consider the issue as the quantum of available contiguous spectrum is less the 5MHz. The next auction is scheduled in January next year.

According to a recent communication, the DoT has asked the Telecom Commission, which is scheduled to meet on 29 November, to take a call on whether successful bidders would be given the option to withdraw their bids if they do not get contiguous 5MHz spectrum. So far, the Government had given this option in all previous auctions.

It has also asked to consider whether the auction can be conducted in two stages, where the first round would determine the price and the second round will be conducted in the service areas where there is more than one bidder.

In the second round, the bidders will have to quote the premium which they would pay over and above the auction determined price for the contiguous blocks of 5MHz. This option will only be available to the successful winners of a minimum of 5MHz spectrum.