NEW DELHI : The spectrum auction for mobile services will start on May 20, according to a notice inviting applications released by the Department of Telecom on Friday.
The government will auction eight spectrum bands at a base price of Rs 96,317.65 crore. Spectrum, held by certain companies undergoing insolvency processes, will be put on the auction. The right-to-use of frequencies held by the telecom service providers expiring this year will also be put on the block.
All the available spectrum in 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz, and 26 GHz bands will be part of the auction.
“The Department of Telecom (DoT) has initiated the spectrum auction to augment the existing telecom services and maintain continuity of services. The DoT issued notice Inviting applications (NIA) today (Friday),” an official statement said. “The cumulative reserve price of the 10523.15 MHz spectrum put to auction is Rs 96,317.65 crore,” the statement added.
The department has fixed April 22 as the last date for submission of application and it will release the final list of bidders on May 9. The spectrum will be assigned for a period of twenty (20) years and successful bidders will be allowed to make payments in 20 equal annual instalments, duly protecting the NPV at the interest rate of 8.65%.