NEW DELHI: A day after the Cabinet approved the spectrum auction, the Department of Telecommunications (DoT) on Friday said it will be able to conduct the auction sometime in June 2024, as the entire process is time-consuming.
Two top DoT officials said conducting auctions during this fiscal year or before the election is not possible as it involves technical and legal issues. In short, the auction will take place only under the new government.
“We have sent the request to the Cabinet for approval of the spectrum auction in December 2023. The approval came in February 2024. If we start the process today, it will take at least 45 days to complete. Moreover, to conduct it during the election period, we will need permission from the Election Commission too. It means there are so many legal and technical issues involved,” said an official.
Another official is of the view that the reason for delaying approval from the Cabinet is expected subdued response from the telecom service providers. The telcos already spent a hefty amount in the 2022 auction to lease spectrum for their 5G services.
Reliance spent Rs 88,078 crore towards 5G spectrum, Bharti Airtel spent Rs 43,084 crore, and Vodafone Idea spent Rs 18,799 crore for spectrum in 2022 auction. Therefore, this time, the telcos will only bid for airwaves, which will be up for renewal in some circles. For instance, Vodafone Idea and Bharti Airtel have to renew their spectrum of 900 and 1800 MHz bands in eight circles: Uttar Pradesh (East), Uttar Pradesh (West), West Bengal, Assam, Bihar, Jammu and Kashmir, North-East, and Odisha.
The Cabinet on Thursday approved a spectrum auction with a total of 10,523 MHz and a valuation of Rs 96,318 crore (at reserve price). The auction will take place in the spectrum at 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz, and 26 GHz.
It said unsold airwaves from the last auction as well as spectrum held by certain companies undergoing insolvency and expiring in 2024 will go for auction. To ensure continuity of telecom services, spectrum will be given to companies for an interim period on payment of the reserve price.