Business Today
Loading...

Cabinet gives nod for largest spectrum auction in February

The government is expected to fetch around Rs 64,840 crore from this year's auction, which will help it reach the fiscal deficit target of 4.1 per cent of the GDP.

Mail Today Bureau | January 6, 2015 | Updated 09:02 IST
Telecom minister Ravi Shankar Prasad
Telecom Minister Ravi Shankar Prasad said that the government intends to auction third-generation, or 3G, spectrum in 2,100 MHz simultaneously. (Photo: Reuters)

The Cabinet approved the largest ever telecom spectrum auction that is expected to fetch around Rs 64,840 crore on Monday. The government will sell 380.75 megahertz (MHz) of second generation (2G) spectrum in the premium 900 MHz, 1,800 MHz and 800 MHz bands in February. Spectrum in 2,100 MHz may also be put on auction simultaneously after the defence ministry vacates it.

The Cabinet also approved a reserve price of Rs 3,646 crore pan-India per MHz in 800 MHz, Rs 3,980 crore for 900 MHz band pan-India, excluding Delhi, Mumbai, Kolkata, and J&K; Rs 2,191 crore pan-India (excluding Maharashtra and West Bengal) in 1,800 MHz band, according to an official statement released here.

The government had garnered about Rs 62,162 crore from the last auction in February 2014. Proceeds from this year's auction will help government reach its fiscal deficit target of 4.1 per cent of the GDP. As per the tentative timelines drawn by the Department of Telecommunications (DoT), the last date for submission of application is February 2 and bidders will be pre-qualified by February 13. The auction will start on February 23.

Telecom minister Ravi Shankar Prasad said that the government intends to auction third-generation, or 3G, spectrum in 2,100 MHz simultaneously. "What had been pending for last many years, that is 5 MHz in 2,100 MHz from the defence, we have been able to do it," he told news agency PTI. The focus of the February auction, Prasad said, is to provide adequate spectrum, prevent hoarding, fair competition, improve telecom services for consumers and adequate revenue for government.

The reserve or auction start price approved is the same as the one recommended by the Telecom Commission except in the case of 900 MHz. The Commission had proposed a reserve price of Rs 3,695 crore for each MHz in 900 Mhz. Against this, the Cabinet approved reserve price of Rs 3,980 crore.

"The estimated revenues from this auction are Rs 64,840 crore (excluding 2.,00 MHz spectrum) of which Rs 16,000 crore is expected to be realised in the current financial year," the statement added.THE Cabinet approved the largestever telecom spectrum auction that is expected to fetch around Rs 64,840 crore on Monday. The government will sell 380.75 megahertz (MHz) of second generation (2G) spectrum in the premium 900 MHz, 1,800 MHz and 800 MHz bands in February. Spectrum in 2,100 MHz may also be put on auction simultaneously after the defence ministry vacates it. The Cabinet also approved a reserve price of Rs 3,646 crore pan-India per MHz in 800 MHz, Rs 3,980 crore for 900 MHz band pan-India, excluding Delhi, Mumbai, Kolkata, and J&K; Rs 2,191 crore pan-India (excluding Maharashtra and West Bengal) in 1,800 MHz band, according to an official statement released here.

The government had garnered about Rs 62,162 crore from the last auction in February 2014. Proceeds from this year's auction will help government reach its fiscal deficit target of 4.1 per cent of the GDP. As per the tentative timelines drawn by the Department of Telecommunications (DoT), the last date for submission of application is February 2 and bidders will be pre-qualified by February 13. The auction will start on February 23.

Telecom minister Ravi Shankar Prasad said that the government intends to auction third-generation, or 3G, spectrum in 2,100 MHz simultaneously. "What had been pending for last many years, that is 5 MHz in 2,100 MHz from the defence, we have been able to do it," he told news agency PTI. The focus of the February auction, Prasad said, is to provide adequate spectrum, prevent hoarding, fair competition, improve telecom services for consumers and adequate revenue for government.

The reserve or auction start price approved is the same as the one recommended by the Telecom Commission except in the case of 900 MHz. The Commission had proposed a reserve price of Rs 3,695 crore for each MHz in 900 Mhz. Against this, the Cabinet approved reserve price of Rs 3,980 crore.

"The estimated revenues from this auction are Rs 64,840 crore (excluding 2.,00 MHz spectrum) of which Rs 16,000 crore is expected to be realised in the current financial year," the statement added.

  • Print
  • COMMENT
BT-Story-Page-B.gif
A    A   A
close