Trai recommends e-auction for broadband spectrum

The Telecom Regulatory Authority of India (Trai) has also increased the reserve price and performance bank guarantee for 15 MHz of 3G and BWA spectrum.

Releasing its recommendations for BWA spectrum allocation today, Trai has suggested that the auction should be done in blocks of 5 MHz each and any bidder can bid for one or two or three blocks. A company can bid up to a maximum to 15 Mhz in block of 5 Mhz.

The bidder has to specify before the auction, the number of blocks he desires to bid for. After the conclusion of the auction process, the highest bid obtained for 5 Mhz block shall be declared and all successful bidders shall have to match the highest bid, it said.

Trai has also reiterated its earlier recommendation of charging an additional step-up annual spectrum fee of 1 per cent of total adjusted gross revenues (AGR) for BWA services.

According to industry sources, this is the first time Trai has suggested for e-auction, which would be convenient for all participants.

The regulator has also increased the reserve price and performance bank guarantee for 15 Mhz spectrum in bands of 2.3-2.4 Ghz, 2.5-2.69 Ghz and 3.3-3.4 Ghz spectrum. The reserve price would be at Rs 60 crore for metro and category