TRAI to Auction All 700MHz Band Spectrum
Monday, Trai reiterated that a entire band spectrum available in 700MHz be auctioned in upcoming scale as non-utilization would result into irreversible loss to the government. 700MHz band spectrum would be proposed on base price which is four times of 1800MHz band.
Trai recommended a high base price of Rs. 11, 485 crores per megahertz for the 700MHz band which will be auctioned at first time and spectrum band are economical to provide telephony services compared with other bands like 900MHz or 1800MHz.
The department of Telecom (DOT)
Department of telecom had asked Trai if auction be split into two phases because demand may not be high with quantity of airwaves and rolling of networks using spectrum using which was bought in2014 and 2015. Leading operators have requested the government to defer in sale of 700MHz spectrum.
Telecom Regulatory of India said DOT’s demand of spectrum may be less in forthcoming auction may not be entire correct as subscriber base has widened and traffic has increased manifold data traffic, Trai said,’’ holding back some of the spectrum in 700MHZ from this auction and selling it after a gap of certain period of time from now, it also assumed that greater revenue receipts now may not be of economic which will impact on telecom services on other sectors and overall GDP growth.
The regulator had submitted recommendations for base price for spectrum in seven band, including 700MHz band DOT is looking to commence the scale around mid-July whopping Rs. 5, 36,000. It has not bench marked reserve price of 700 MHz band with reference to either 800 or 900 MHz. the cost of delivering mobile services in 700MHz band is approximately 70 percent lower than 2100MHz band which is 3G services.
Trai also said harmonization exercise should be expected and additional spectrum that comes out of it should be put to auction.