Govt expects to garner Rs42,850 cr from spectrum auction
02 Mar 2015
Union finance minister Arun Jaitley is hoping to garner Rs42,865 crore from the spectrum auction in the 800, 900 and 1,800 megahertz bands scheduled and other communications services in 2015-16.
The next auction is scheduled for 4 March, though it is already mired in controversy – telecom operators complain that the government is not releasing enough spectrum for sale, thereby jacking up prices as well as short-changing the consumer (See: COAI slams govt for selling spectrum in dribs and drabs).
The Supreme Court meanwhile has stayed the actual possession of spectrum purchased through the bidding till its final orders on the subject (SC caveat on spectrum auction may affect bidders).
The government, which was aiming to get Rs65,000 crore from spectrum auctions on 4 March, can get an estimated additional Rs20,000 crore this fiscal itself following a plan to sell radio waves in the 2,100 MHz band of radio waves for use by telecom operators.
The government has announced a reserve price of Rs3,705 crore per MHz of the 2,100 Mhz spectrum for a 15-year period.
During the spectrum auctions held in 2010 for the 2,100 MHz band with a reserve price of Rs. 700 crore per MHz spectrum, the government was able to attract Rs3,350 crore per MHz.
However, the base price suggested by the Telecom Commission is about 11 per cent higher than what telecom firms paid for in the 2010 auction. It is also 36 per cent higher than the Rs2,720 crore per Mhz recommended by the Telecom Regulatory Authority of India.
The government sold 440 MHz in the 2100 MHz band in 2010. This year the planned sale is for 85 Mhz.
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