Gaurav ChoudhuryMoneycontrolThe government is likely to set an ambitious revenue target of Rs 75,000 crore to Rs 100,000 crore in 2017-18 earned by selling telecom radio waves in 2017-18.
The department of telecommunication (DoT) has identified about 580 MHz of spectrum that will be auctioned in the next fiscal year. These include spectrum or radio waves across 700, 1800, 2100, 2300 MHz and the so-called 'space' spectrum required for 5G telecom data services.
Spectrum auctions in 2016-17 did not yield the expected revenues. Seven telecom companies including Vodafone, Bharti Airtel, Idea cellular and Reliance Jio made commitments of Rs 65,789 crore for buying 964.80 MHz of spectrum in various frequency bands, as against 2,354.55 MHz of radiowaves on the block.
About 60 percent of the spectrum remained unsold, including in the premium 700 MHz band.
Spectrum in 700 MHz is considered more economical for providing telephony services compared to other bands such as 900 MHz or 1800 MHz.
The lower the frequency band, the higher is its efficiency to carry long distance signals.
According to a report by Centre for Technology Innovation, Brookings Institution, India needs more spectrum to take advantage of new possibilities for social and economic development. With demands for mobile technology expected to rise rapidly in future years, it is vital that the country deploy spectrum for commercial utilisation in order to make possible the expansion of mobile broadband.
The fresh round of auctions will likely take place later in 2017.
A successful selling of radio spectrum is critical for the government’s fiscal math amid a demonetisation-induced slowdown.
Telecom spectrum allocation in India has been hit by the swirl of allegations after national auditor Comptroller and Auditor General (CAG), in a report tabled in 2010, had estimated that the government may have lost potential revenues of Rs 1.76 lakh crore when it allotted 2G spectrum in 2008 through a controversial “first-come, first-served policy.”
In the wake of the 2G spectrum allocation scandal, the Supreme Court in an order had cancelled 122 telecom licences and ordered auctioning off spectrum that the government had allotted in 2008.
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