Auction route for additional spectrum

A technical panel of the Department of Telecommunications (DoT) is understood to be likely to recommend a shift in the rule for allocating more spectrum for cellular operators away from the current subscriber-based formula to a revenue-generation auction model.

A senior official said the report from the Telecom Engineering Centre, the DoT’s technical arm, is likely to come in the next 10 days. And there is a consensus in the panel for shifting to the auction mode.

Existing parties would be affected in different ways by such a change, he said, and “we would try our best to bring out a fair solution beyond legal challenge. We have already heard the stakeholders and taken their inputs”.

Currently, operators using GSM technology get 6.2 MHz of spectrum each, while those using the rival CDMA standard get 5 MHz each. GSM operators may have a maximum of 15 MHz spectrum; for CDMA players, the limit is 7.5 MHz. The panel is headed by Additional Secretary Subodh Kumar. Its task is look at a model of spectrum allocation allotments beyond this mark (6.2 MHz and 5 MHz).

Operators already holding spectrum above the 6.2 MHz and 5 MHz mark may be told to pay a one-time fee for the extra spectrum, something the Telecom Regulatory Authority of India (Trai) has also recommended. All top GSM operators — Bharti, Vodafone, Idea (in some circles) — are holding over 6.2 Mhz spectrum.

Last year, the government raised its minimum subscriber conditions for awarding new spectrum. Trai had recommended that operators increase their subscriber base by two to six times before they are given additional spectrum, which GSM operators challenged. Then DoT asked TEC to come up with new norms.