Spectrum auction for 4 bands to start tomorrow

Govt plans to sell 380.75 MHz of spectrum in three bands - the premium 900 MHz band, 1800 MHz and 800 MHz

Department of Telecom will start the biggest ever auction of 2G and 3G spectrum tomorrow wherein 8 firms will bid to acquire radiowaves in four bands, which may fetch the government over Rs 82,000 crore.

The government plans to sell 380.75 MHz of spectrum in three bands - the premium 900 MHz band, 1800 MHz and 800 MHz, besides 5 Mhz in the 2100 Mhz band across 17 out of 22 telecom areas in the country.

Based on the reserve price, the government is estimated to garner over Rs 82,000 crore. However, the government is hopeful of getting around Rs 1 lakh crore from the sale of radiowaves used for mobile telephony.

At the minimum or auction start price for the 2,100 Mega-Hertz band or 3G spectrum, the government would garner at least Rs 17,555 crore. The reserve price for auction of 2G spectrum in 800 MHz, 900 Mhz and 1800 MHz bands will fetch the government Rs 64,840 crore.

Most of the spectrum being put up for the auction is presently held by Airtel, Vodafone, Idea Cellular and Reliance Telecom. Their licences are expiring in 2015-16.

Mobile licences for Idea Cellular's 9 circles, 6 circles of Airtel and 7 circles each of Vodafone and Reliance Telecom are coming up for renewal.

Overall there are 29 licences in 18 service areas which expire in 2015-16. These licences hold 184 MHz spectrum in the 900 MHz band and 34.2 MHz in 1800 MHz band.

It is mandatory for these companies to bid for spectrum if they have to continue offering mobile and other telecom services as their permit is expiring.

The government had raked in Rs 62,162 crore from the last spectrum auction in February 2014.