DoT extends auctioneer selection schedule by 10 days

The Department of Telecom has extended the deadline by 10 days till month-end for submission of bids by potential auctioneers that will manage the spectrum auction.

As per new dates, potential auctioneer will have to submit bid by July 30 instead of July 20, DoT said in a release on Thursday.

Sources said the auctioneer, which will manage auction of airwaves in 1800 Mhz and 800 Mhz will be finalised on August 8 instead of target date of July 26 which was presented before Empowered Group of Minister meeting last week.

The delay is mainly on account of pending decision of the EGoM on minimum price of airwaves for telecom services that companies will have to pay in auction, they said.

The EGoM is scheduled to meet on Friday to take view on spectrum price which may be referred to Union Cabinet for final decision.

Sources said that DoT has been asked to make a matrix of reserve price in the range of Rs 12,000 crore to Rs 18,000 crore and calculate its impact analysis in the sector on the basis of spectrum usage charge in the range of 3 to 8 per cent.

DoT has also announced a fixed component of Rs 5 crore in auctioneer fee. This would be apart from its commission that it will get after successful completion of auction process.

Earlier, the auctioneer was only entitled to get a percentage of difference between base price of airwaves in the auction and final price.

The Telecom Regulatory Authority of India had recommended a minimum reserve price of over Rs 3,622 crore for auction of one Mhz of spectrum in the 1800 Mhz band, amounting to over Rs 18,000 crore for a pan-Indian operations in case of a new entrant, for 5 Mhz.