Next spectrum auction may fetch Rs 31,500 cr at reserve price

The government may garner Rs 31,534 crore from the next round of spectrum auction if all the radiowaves put up for sale are sold at the price recommended by telecom regulator Trai.

However, it may get only Rs 15,000 crore of the total amount in this fiscal if the previous rule of part payment option continues, says telecom consulting firm Telanalysis.

"Government may earn around Rs 15,000 crore through spectrum if auction happens in FY 2013-14 and provided operators pay 33 per cent upfront payment as decided in the last spectrum auction," Telecom expert and Telanalysis Editor Praveen Prashant told PTI.

Telecom Regulatory Authority of India has recommended putting 285 megahertz of spectrum, freed from the cancellation of 122 licences by the Supreme Court last year in the 2G specturm allocation case, at 37 per cent lower price compared to last reserve price fixed by government.

At new pan-India price recommended by the regulator, government can get Rs 21,334 crore from auction of airwaves in 1800 Mhz band, and Rs 10,200 crore from sale of all 46 Mhz of airwaves to be available in 900 Mhz band in view of expiry of licences of Airtel, Vodafone and Loop in second half of 2014.

Going by the guidelines issued by Department of Telecom for last auction, the 900 Mhz auction can fetch Rs 9,500 crore from auction of 42.5 Mhz of spectrum in Delhi, Mumbai and Kolkata, he said.

"If all spectrum getting released from expiry of licences in 2014 is put for auction then government may get bids worth Rs 31,534 crore. If DoT continues to go ahead with 42.5 Mhz auction in 900 Mhz, then auctions may fetch Rs 31,040 crore," Prashant said.