DoT tastes success in mock spectrum auctions

The Department of Telecommunications (DoT) on Monday successfully conducted a mock spectrum auction, wherein it checked whether the software was working smoothly and that there were no technical glitches.

The mock auction started  around 10:30 am and ended at 7 pm. Telcos placed their bids from their offices.

According to a DoT official, the mock auction is similar to a full dress rehearsal, where they check all parameters of the software and see if there are any bugs or glitches.

The mock auction will continue till Tuesday. The actual auction will start from October 1.

The government is making available 2,354.55 Mhz of spectrum and at base prices, it would accrue Rs 5.56 lakh crore to the exchequer.

Seven telecom operators have deposited Rs 14,653 crore as earnest money for the largest spectrum sale ever. These are  Bharti Airtel, Vodafone, Idea Cellular, Reliance Jio, Reliance Communications, Aircel and Tata Teleservices.

However, the auction will not see participation from any new player. State-run telecom operators — BSNL and MTNL — have not submitted their bids, as was the practice in past auctions.

UNDER THE HAMMER

• A mock spectrum auction was successfully conducted on Monday by DoT
• All parameters of the DoT software was checked for bugs or glitches
• Telcos placed their bids from their offices
• The actual auction is slated to start from October 1
• About 2,354.55 Mhz of spectrum is up for sale
• At a base price, the auction would accrue Rs 5.56 lakh crore to the exchequer
• Seven telecom operators have already deposited Rs 14,653 crore as earnest money
• The auction will not see participation from any new player
• State-run telcos have not submitted their bids
• The rules for spectrum auction have also been made bidder-friendly

The latest auction is important as the government is putting up large chunks of spectrum for sale, which should help in removing fragmentation and improve service quality. Also, the rules have been made bidder-friendly. The government expects revenue of Rs 98,995 crore from communication services in 2016-17, which includes proceeds from spectrum auction and other fees levied by DoT.