CDMA Auction: EGoM offers more spectrum

CNBC-TV18 learns that the Empowered Group of Ministers on spectrum has decided to auction one extra block of CMDA spectrum, even as it has decided that the spectrum will remain valid for 20 years.

The EGoM, which met last week has decided that the CDMA spectrum will be auctioned in blocks of 1.25 MHz each, and new entrants like Sistema will have to bid for a minimum for two blocks of 1.25 MHz each, with the option of being allowed to bid for another 1.25 MHz subsequently.

Effectively, the total amount of CDMA spectrum on offer in the auction will be 3.75 MHz, higher than the 2.5 MHz that the telecom regulator TRAI had recommended.

The EGoM has also decided that cancelled licences will be treated as new entrants, and has also said that existing spectrum conversion can happen only after licence expiry.

While the reserve price will be finalized at a later date, the EGoM has decided that it will ‘maximise revenues from the auction within the set parameters.’