TRAI kicks off 2G auction process
The Telecom Regulatory Authority of India (TRAI) has started the process of auctioning 2G spectrum. The regulator, on Wednesday, released a consultation paper on Auction of Spectrum seeking views of various stakeholders by March 21.
In the consultation paper, the regulator has made it clear that the reserve price of the spectrum will be more than Rs 1,650 crore. In 2008, the former communications minister A Raja issued spectrum at R1,650 for 4.4 MHz of start up spectrum.
In its consultation paper, the regulator has also said that the reserve price could be between Rs 818 crore and Rs 1,769 crore per MHz on the basis of various parameters. The regulator has sought various stake holders suggestions on what should be the reserve price for 1,800 band and 900 band.
The regulator has also asked whether the spectrum should be for all the spectrum released due to cancellation of licences or due to spectrum released by the defence ministry.
The Supreme Court of India in its judgment dated February 2, directed TRAI to make fresh recommendations for grant of licence and allocation of spectrum in 2G band in 22 service areas by auction, as was done for allocation of spectrum in 3G band.
“The key issues raised in the consultation paper are quantum of spectrum to be auctioned, liberalisation of the spectrum, reframing of spectrum in 800/900 MHz bands, structure of auction, spectrum block size, eligibility criteria for participating in the auction, reserve price, roll out obligations, spectrum usage charges and spectrum trading,” TRAI said in a statement issued on Friday.