Telecom Department: The process of bidding for radio waves worth Rs 3.92 lakh crore in the sixth round of spectrum auction will start from March 1. This information has been given in the notice issued by the Department of Telecommunications.
The process of bidding for radio waves worth Rs 3.92 lakh crore in the sixth round of spectrum auction will start from March 1. This information has been given in the notice issued by the Department of Telecommunications. It has been waiting for a long time. This auction is going to happen after four years and it will be two years after the Base Regulatory Authority of India (TRAI) has calculated and suggested the base price. Department of Telecom (Telecom Department) has changed the base rate of selected spectrum bands in some circles as compared to the suggestion from TRAI.
January 12 is the time fixed for the pre-bid conference. Clarification can be sought till January 28 on any issue on the notice. To participate in the auction, the telecom operator will have to apply by February 5. According to the notice, the final list of bidders will be announced on February 24, 2021 and the auction process will start from March 1.
Cabinet approved on 17 December (Cabinet approved on 17 December)
On 17 December 2020, the Union Cabinet had approved the auction of 2,251.25 MHz spectrum of Rs 3.92 lakh crore in seven frequency bands. In this round, the auction was approved on the basis price suggested by TRAI in 700 MHz, 800 MHz, 900 MHz, 2100 MHz, 2300 MHz and 2500 MHz. The government, however, kept the 3300-3600 MHz band out of the auction this time. The industry has been calling this frequency suitable for 5G services. This band was also included in TRAI’s suggestions.
Available to all 22 telecom circles (Available to all 22 telecom circles)
Those bidders who opt for the 700 MHz band will have to spend Rs 32,905 crore to buy this spectrum band of premium category for the entire country. The 700 MHz, 800 MHz and 2300 MHz bands have been made available for all 22 telecom circles. Apart from these, 1800 MHz bands are available for 21 circles, 900 and 2100 MHz for 19-19 circles and 2500 MHz for 12 circles.
The bidders who opt for lump sum payment will have to pay the total within 10 days of the release of the result. At the same time, for those opting for late payment, 50 percent of the total payment in case of 1800 MHz, 2100 MHz, 2300 MHz and 2500 MHz and 25 percent of the total payment in the case of 700 MHz, 800 MHz and 900 MHz are deposited within 10 days. Have to do.
Three percent AGR will also have to be paid (3 percent AGR will also have to be paid)
The bidder will also have to pay a three percent Adjusted Gross Revenue-AGR in addition to the Bidder amount, which will not include wireline charges. The Cellular Operators Association of India (COAI), the organization of the telecom industry, said that spectrum will help telecom companies to meet the needs of increased use of data. However, if the radio wave had reduced base prices, companies would have been encouraged to invest in the network.
Market analyst believes that bids between 30 thousand to 50 thousand crore rupees are going to be received in this auction. Experts also say that instead of taking interest in new spectrum, companies will focus on getting the old spectrum renewed. Vodafone-Idea may also stay away from bidding for the renewal of its existing spectrum in some circles.
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