DoT mulling auction of 15 Mhz 3G spectrum in July

The Department of Telecom is considering sale of 15 Mhz of 3G spectrum, currently held by the Defence, along with other frequencies in the auction to be held in July this year.
"The DoT is working with Defence to get 15 Mhz of spectrum in 2100 Mhz band (3G) under swap agreement. These airwaves may be put for auction in July if freed from Defence," a source told PTI.
Telecom ministry had proposed to exchange 15 Mhz spectrum it holds in 1900 Mhz band with same quantum of airwaves held by Defence in 2100 Mhz. The 2100 Mhz band is currently used for 3G services.

The Cabinet had approved swapping of spectrum between Ministries of Telecom and Defence in January 2015 and process was to be completed in a year as part of harmonisation of all radiowaves among all ministries.
All ministries and departments like Aviation, Space, Prasar Bharti, Defence, Telecom etc that are holding spectrum were asked to harmonise radiowaves among themselves, identify timeline by when will they be able to vacate spectrum not marked for them in 4-5 years.
For 3G spectrum in 2100 band, Trai suggested pan-India base price of Rs 3,746 crore.

The Defence Ministry and the DoT had signed a pact in 2009-10 under which the former had agreed to vacate 25 megahertz (MHz) of 3G spectrum and 20 MHz of 2G in phases.

In return, DoT had committed to set up an exclusive defence network for its communication services.
The Defence Ministry had vacated 15 MHz of 3G spectrum which was auctioned in 2010. It had also vacated 15 MHz of 2G spectrum, which was allocated to new operators in 2008.
Under the pact, the remaining spectrum - 10 MHz in 3G and 5MHz in 2G - was to be vacated only after alternative communication network is completed.
Though alternative communication network for Defence is yet to be completed, it provided 5 Mhz of 3G spectrum which was auctioned across 17 circles in 2015 fetching bids worth Rs 10,115 crore against estimate of Rs 17,555 crore.

The inter-ministerial panel Telecom Commission is expected to meet on April 30 to discuss spectrum auction modalities. It is expected suggest final base price for spectrum to be auctioned which will need cabinet approval.
The auction is scheduled for July and has potential to fetch Rs 5.36 lakh crore to the government exchequer.
Government has set target of about Rs 99,000 crore from telecom sector this fiscal.