The empowered group of ministers (EGoM) on spectrum pricing on Tuesday endorsed the Telecom Commission?s suggestion that 10 MHz spectrum per circle be put up for auction. Spectrum will be auctioned in eight blocks of 1.25 MHz. There will also be a provision for topping up in case a new player fails to win a minimum of 5 MHz spectrum required to commence operations, which could raise the quantum of spectrum on auction up to 13.75 MHz.
However, the EGoM could not decide on the reserve price ? the most crucial aspect of auctions ? since the Telecom Regulatory Authority of India (Trai) has not yet finalised its analysis of its impact on tariffs, operators? financial viability and government revenues. Sources said Trai may take a couple of days more for its analysis, which would then be sent to the EGoM.
Trai had called for a high reserve price of R18,110 crore for 5 MHz, a proposal that met all-round criticism. The Telecom Commission, which had taken decisions on the quantum of spectrum to be put up for auction, had failed to decide on the reserve price and lobbed the ball back into Trai?s court for analysing its impact based on which the EGoM could take a final decision.
On refarming of the more efficient 900 MHz spectrum (which means taking away this band and allocating the 1,800 MHz band instead) held by operators like Bharti Airtel, Vodafone and Idea Cellular, sources said the timing and modalities of the same would be decided later.
The Telecom Commission had earlier decided that though refarming would be done and spectrum in the 1,800 MHz band must be provisioned for that, its timing was not important for the forthcoming auctions. The EGoM approved this decision.
Sources said other matters like liberalising the usage of spectrum ? allowing 2G spectrum for 4G services and vice-versa ? were also approved by the EGoM. Even matters like time line of the auctions were approved. The EGoM may meet next on June 22.