The Union Cabinet on Wednesday approved the proposal of the Department of Telecommunication (DoT) to proceed with auction in 2100 MHz band along with 800, 900 and 1800 MHz bands.
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The Reserve price approved for 2100 MHz Band is Rs. 3705 crore pan-India per MHz.
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A five MHz Block will be offered in all service areas except Jammu and Kashmir, Bihar, Himachal Pradesh, West Bengal and Punjab. Thus, a total of 85 MHz in 17 Licensed Service Areas (LSAs) is being put to auction.
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Salient condition of payment terms and eligibility criteria are given in the Annexure.
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The estimated revenues from the auction of 2100 MHz Band are Rs. 7555 crore of which Rs. 5793 crore is expected to be realized in the current financial year.
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Eligibility Criterion
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(i) Any licensee that holds a Unified Access Service (UAS)/ Cellular Mobile Telephone Service (CMTS) / Unified License (Access Service) UL(AS) / UL licence with authorization for Access Services for that Service Area; or
(ii) any licensee that fulfils the eligibility for obtaining a UL with authorization for AS; or
(iii) any entity that gives an undertaking to obtain a UL for access service authorisation through a New Entrant Nominee as per the DoT guidelines/licence conditions. Can bid for the Spectrum (subject to other provisions of the Notice).
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Payment Terms
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Successful Bidders shall make the payment in any of the following two options
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(a) Full upfront payment within 10 days of declaration of final price or pre-payment of one or more annual instalments; or
(b) deferred payment, subject to the following conditions:
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(i) An upfront payment; of 33 percent in the case of 2100 MHz band.
There shall be a moratorium of two years for payment of balance amount of one time charges for the spectrum, which shall be recovered in 10 equal annual instalments.