DoT to make back reference to Trai on 700MHz auction

A DoT committee had recently submitted a report on earlier recommendations of Trai on 700MHz auction

The Department of Telecommunications (DoT) will make a back reference to the Telecom Regulatory Authority of India (Trai) for its recommendations on the proposed auction of 700-MHz band.

A DoT committee had recently submitted a report on the earlier recommendations of Trai on the 700MHz auction and the report will now be reviewed by the Telecom Commission.

In its report, the DoT Committee has sought approval of the Telecom Commission to make a back reference to the regulator on the matter, according to a recent DoT communication.

The DoT has earlier stated that auction of 700MHz is likely to be conducted over the next two years. While the proposal for auction was mooted few years ago, the government did not do it, as the 700MHz spectrum is considered as one of the most efficient bands worldwide.

Details of technology, process of allocation, availability, and tentative schedule are currently being worked out by the DoT. Meanwhile, DoT will have to seek Trai's suggestion on valuation and reserve price of the spectrum.

The Government has about 100MHz of spectrum available in the 700MHz band that can be auctioned. It was earlier looking to offer up to 10MHz in each circle, in eight blocks, with no restriction for operators on the number of blocks they want to bid. It is likely 2x45 MHz would be auctioned, while 10 MHz would be kept in between as a guard band.

In its earlier recommendation, Trai had suggested that spectrum in the 700MHz band be priced at four times the 1,800MHz base price. Considering the price of 1,800MHz spectrum in the February auction, the base price for 1 MHz of pan-India spectrum in the 700MHz band would be about Rs 9,000 crore, and a little more than Rs 45,000 crore for 5MHz of pan-India spectrum.

At present, 700MHz spectrum band is being used for long-term evolution (LTE) services in countries like the US, Australia, and in Latin America. There are more than 280 devices available that can be used for 4G (fourth generation) or LTE services on this spectrum.