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Last Updated : Apr 23, 2012 04:30 PM IST | Source: CNBC-TV18

Trai sets 2G auction reserve price higher than 3G: Sources

It is likely to be a big blow on the telecom operators. Telecom regulator TRAI has submitted its recommendations regarding the 2G spectrum auction. This is in inline with the February 2 judgement in which it had cancelled around 122 licenses of new telecom companies.


Telecom Regulatory Authority of India (TRAI) has proposed a base price for auction of 2G spectrum that is higher than the 3G auction price set in 2010, reports CNBC-TV18's Siddarth Zarabi quoting sources.


For the the 900 mega hertz band, the telecom regulator has proposed a base price at Rs 7000 crore, which is twice the base price set for a 3G spectrum. For 700 megahertz band, it has been set at Rs 14,000 crore which is 4 times the 3G reserve price.


Recommendations:


Reserve price



  • Broadly 2G spectrum reserve price seen at Rs 4,500 cr
  • Reserve price at 1.08x of 3G reserve price of Rs 3,500 cr
  • Reserve price of 900 Mhz a 2x of 3G reserve price
  • Reserve price of 700 Mhz a 4x of 3G reserve price

Spectrum allocation



  • Auction of 900 Mhz band in H1FY14
  • Auction of 2100 Mhz band in H2FY14
  • Auction of 700-1,450 Mhz bands in FY15
  • Around 100 Mhz be auctioned in phases per circle
  • 30 Mhz of 700 Mhz band, 4-10 Mhz of 800 Mhz band
  • 15 Mhz of 900 Mhz band, 15 Mhz of 1,800 Mhz band
  • 5 Mhz of 2,100 Mhz band, 20 Mhz of 2,300 Mhz band


Qualifiers:



  • 2G spectrum auction to be open to all applicants
  • Spectrum to be auctioned in blocks of 1.25 Mhz
  • 5 Mhz to be offered as start-up spectrum
  • Liberalising usage of all spectrum
  • Multiple round, ascending bid auction
  • Immediate refarming of 900 Mhz spectrum
  • Limited spectrum trading among companies
  • Deferred payment for 700, 800, 1900 Mhz bands
  • 2 year moratorium, 25% payment initially, rest over 10 years
  • For 1800 Mhz band, 33% payment initially, rest as other bands
  • Annual usage charge for all auctioned spectrum to be 1%
  • Non-auctioned spectrum charge as per current levy
  • Pegs value of spectrum at Rs 7,00,000 cr
  • All spectrum not to be auctioned in one go
  • Spectrum auction to be phased out over 3 years
First Published on Apr 23, 2012 02:02 pm
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