Defence agrees to release 5MHz spectrum in 2100MHz band: DoT source

DoT has estimated that the next round of spectrum auction in February will fetch at least Rs 9,355 cr

The defence ministry has finally agreed to release 5 MHz of spectrum in the 2,100 MHz band, which the department of telecommunications (DoT) will auction along with 800, 900 and 1,800 MHz bands in February.

“The proposed swap of 15 MHz spectrum in 2,100 MHz band, with similar quantity in 1,900 MHz band, between the armed forces and the DoT is underway. The ministers of both the departments have met a few times in the past few weeks. However, it may take time to be resolved,” said a source in DoT.

The defence ministry had earlier released 15 MHz of spectrum in the 2,100-MHz band, allocated to operators for commercial use to provide 3G services.

The source also said DoT had finalised the reserve price for 800, 900 and 1,800 MHz bands of radiowaves that would be auctioned in February. The Telecom Commission in its meeting on Monday had recommended a base price of Rs 3,693 crore per MHz for 900 MHz spectrum across 18 circles, about 23 per cent higher than what the Telecom Regulatory Authority of India (Trai) had suggested.

For 800 MHz band, the commission had suggested a base price of Rs  3,646 crore per MHz (pan-Indian), 17 per cent more than the Trai-recommended price. For 1,800 MHz band, it had recommended the base price of Rs 2,191 crore per MHz across 20 telecom zones.

DoT had already asked Trai for its recommendations on pricing and valuation of the 2,100-MHz spectrum that it wants to auction in February, along with the 800 MHz, 900 MHz and 1,800 MHz bands. Trai has already floated a consultation paper on this. Simultaneous auction of all bands would benefit operators including Bharti Airtel, Vodafone, Idea and Reliance Communications, which had feared a shortage of spectrum would lead to cut-throat competition and raise auction prices.

DoT has estimated the next round of spectrum auction in February will fetch at least Rs 9,355 crore. According to estimates, auction of spectrum in the 2,100-MHz band could get bids worth at least Rs 5,000 crore.

The DoT had met telecom operators last week to deliberate the issue of call drop that has become a serious concern for consumers.