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

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