The Union Cabinet on Thursday approved the next telecom spectrum auction across multiple bands at a reserve price of Rs 96,317.65 crore. 

A total of 10,523.15 MHz spectrum across 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz and 26 GHz bands, will be put to auction. While the government did not announce a timeline, the spectrum auction is expected to be conducted in the next few months.

“The leftover spectrum in the 2022-23 auctions, the one which is getting expired in 2024, and the spectrum which has been surrendered by companies, will be put to auction,” said Anurag Thakur, minister of information and broadcasting.

With a certain quantum of spectrum held by Bharti Airtel and Vodafone Idea due for renewal this month (at the end of a 20-year lease period), the Cabinet has also approved fresh allotment of spectrum to the companies till the time auctions are conducted. This has been done to avoid any disruption in the telecom services.

In the interim period, Airtel and Vodafone Idea can continue to use the spectrum by paying the last auctioned determined price.

According to analysts, for Airtel, renewal of spectrum is due in 900 and 1800 MHz bands in six circles — Uttar Pradesh (East), Uttar Pradesh (West), West Bengal, Assam, Bihar, Jammu and Kashmir, and Odisha. For Vodafone Idea, the licence is expiring in two circles — West Bengal and Uttar Pradesh (West).

From the upcoming auction, DoT is expecting a subdued response from telcos as demand is expected to be restricted to airwaves which will be up for renewal in some circles. The government is not expecting anything beyond `10,000 crore revenue from the upcoming auctions, according to officials.

“The next spectrum auction will be a limited auction because an already large part of the spectrum required by the industry was auctioned last year. Every financial year, we are trying to have one auction, communications and IT minister Ashwini Vaishnaw had said earlier this month. “This will not be as big as the last round. This will be a significantly smaller auction,” he added.

The Cabinet has also approved allocation of additional 5 MHz spectrum in 700 MHz band for Indian Railways for Kavach technology. Additional 5 MHz spectrum in 700 MHz band has also been approved for National Capital Region Transport Corporation.

The government will also set up a Committee of Secretaries (CoS) to consider re-farming of existing spectrum usages with a view to increase the spectrum availability to meet the future needs of telecommunication services.