Union Cabinet Finalises issues related to Spectrum in various bands

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved the proposal of the Department of Telecom to proceed with auction in 800, 900 & 1800 MHz bands.

The Reserve price approved is Rs 3646 cr pan-India per MHZ in 800 MHz, Rs. 3980 Cr. for 900 MHz band pan India excluding Delhi, Mumbai, Kolkatta, and J&K; Rs 2191 cr pan India (excluding Maharashtra and West Bengal) in 1800 MHz band

The quantum of spectrum to be put to auction is 103.75 MHz in 800 MHz band in all service areas, 177.8 MHz in 17 LSAs in 900 MHz band and 99.2 MHz in 15 LSAs in 1800 MHz band. Thus a total of 380.75 MHz in 800,900 & 1800 MHz is being put to auction.

Payment terms, eligibility criteria and auction objectives shall be as in the previous auction of Feb 2014.

Cabinet also decided that intent to put 2100 MHz to simultaneous auction may be announced along with auction of other bands. Details of this will be announced later on.

The estimated revenues from this auction are Rs 64840 cr (excluding 2100 MHz spectrum) of which Rs 16000 cr is expected to be realized in the current financial year.

Objectives of the Auction

The Government has set itself the following objectives for the Auctions:

Obtain a market determined price of Spectrum in various bands through a transparent process;

Ensure efficient use of spectrum and avoid hoarding;

Stimulate competition in the sector;

Promote rollout of the respective services;

Maximise revenue proceeds from the Auctions within the set parameters.

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