Categories: Business

Spectrum auction possible before October without 5G, DoT is preparing cabinet note for approval


Spectrum auction likely to be held before October without 5G radiowaves

New Delhi As telecom companies like Bharti Airtel and Vodafone Idea are renewing the time for renewal of various licenses, DoT is working on a spectrum auction plan before October. The spectrum band associated with 5G services is not likely to be auctioned in this auction. The source involved in the process said that the department is preparing a note for approval of the cabinet in this regard. Unlike earlier proposals, this would not include the band of 3,300 to 3,600 MHz suitable for 5G services.

The Defense Ministry has demanded 100 MHz spectrum in the 5G band, after which only 175 MHz of spectrum will remain with the DoT for auction. The source said that negotiations are going on between the department and the Ministry of Defense regarding this. However, many licenses of Bharti Airtel and Vodafone Idea are expiring and will have to be renewed to continue their telecom services. So they have to bid for spectrum. Therefore, DoT will auction spectrum of other bands.

The department proposes to auction 8,000 MHz spectrum before October. The 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz and 2500 MHz bands are to be auctioned. Its total value is estimated to be around three lakh crores. The source said that the department can decide the name of any auctioneer for this by 22 May. This agency will develop and manage software for the auction. The auction deadline will also depend on the chosen company.

The source said that four have been found eligible in the technical round tender for the selection of the auction firm. Two companies also have spectrum auction experience in this. If experienced company is selected then auction can be started in two months otherwise three months. But it will not move beyond October.

This post was published on May 18, 2020 8:13 pm

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