DoT sends new timetable for 2G auction process

The Department of Telecommunications (DoT) has sent, to the Empowered Group of Ministers (EGoM) on telecom a fresh timetable for selection of an auctioneer for the 2G spectrum auction, for approval tomorrow.

Based on the the revised schedule, DoT will now have nine days instead of 22 to complete the auction process, which has to be completed by August 31 according to a Supreme Court order.

The inter-ministerial group on the 2G auction has said there is a need for postponing the deadline, which cannot be met. The EGoM under its new head Home Minister P Chidambaram might have to take a call tomorrow on referring the matter back to the apex court and ask for an extension .

TELECOM TALES Revised timetable for the selection of auctioneer
Activity	Earlier date 2012	Revised date 2012
Last date for submission of bids	5-Jul	20-Jul
Opening  of bids containing   eligibility requirements	5-Jul	20-Jul
Declaration of eligible bidders	5-Jul	20-Jul
Opening of technical bids	7-Jul	22-Jul
Presentation by the eligible bidders	7-Jul	23-Jul
Finalisation of successful bidder  and issue of LOI	10-Jul	26-Jul
Issue of information   memorandum (IM) for auction	6-Aug	22-Aug

According to the revised timeline, the process of selection of auctioneer will be completed by August 22, when the information memorandum — the document containing all details of the sale — will be released. The earlier, deadline was August 6. Under the earlier schedule, the 2G auction would have been completed within 34 days after the IM was finalised. If a similar timeline is followed, the government will not be able to complete the auction before the end of August.

Besides, the newly constituted EGoM, which was formed to take a final call on all issues related to the upcoming sale of 2G and bandwidth following the SC order cancelling 122 licences in February, can now only give recommendations. The recommendations of the EGoM, on the contentious issue of pricing would have to be cleared by the Cabinet. According to a government official, “The Cabinet has decided that the reserve price and such other issues, as the EGoM may consider necessary, be placed before the Cabinet for a decision.”

The Telecom Regulatory Authority of India is also going to make a presentation tomorrow to the EGoM on the impact of the base price on telecom companies circle by circle. The regulator had earlier contended that the impact would not be more than 4 paisa to 6 paisa per minute, but according to DOT officials, the new report prepared under Chairman Rahul Khullar has said the impact would be at an average of 14 paisa per minute.

The Telecom Commission, the highest policy making body of DoT, had given two options to the EGoM on the reserve price, one recommended by the Trai, at Rs 3,622 crore per MHz, or Rs 4,245 crore as suggested by a DoT committee. However, no decision on this key issue was taken in the last meeting of EGoM.

In the last meeting of eGoM on June, it had decided to auction a minimum of 10 MHz of 2G spectrum but put off a decision on the contentious issue of determining the reserve price for spectrum auction.

But there are host of issue on which no decision had been taken so far, which includes one time fees for the existing operators, revenue share and spectrum usage charge payable and others.