Telecom regulator issues consultation paper for spectrum auction

The Telecom Regulatory Authority of India (TRAI) has set in motion the process for next round of spectrum auctions in the country by issuing a consultation paper for fixing the reserve price of 2G, 3G and 4G airwaves.

Besides reserve price, key issues such as quantum of spectrum to be auctioned, spectrum cap, roll-out obligations have been raised in the consultation paper for which the regulator has sought comments and counter comments by December 21 and December 28, respectively.

The auctions are expected to be held in the current fiscal year, following pressure from the Finance Ministry which needs funds to meet its fiscal deficit targets of Rs.5.6 lakh crore for 2015-16.

Delay There had been a delay in floating the consultation paper as the Department of Telecom had failed to furnish adequate information sought by the regulator, according to a statement. TRAI had sought from the DoT certain information critical for preparation of the consultation paper through a letter dated July 24, 2015.“The DoT provided certain information through their letter dated October 16. This information is also not complete. Therefore, another letter was sent to DoT on November 16...However, to save time, the Authority has decided to issue the consultation paper based on available information,” according to the statement.

Last auctions, held in March 2015, fetched the government a whooping Rs.1.10 lakh crore. The winning operators were required to pay an upfront payment of up to 33 per cent within 10 calendar days of the close of auction, while the rest of the amount is payable over a period of 12 years.