TRAI pegs value of 2G spectrum at Rs 7,00,000 crore!

The Telecom Regulatory Authority has issued a set of recommendations for the auction of 2G spectrum, according to a report by CNBC-TV18 quoting sources.

The major highlights are:

•The value of 2G spectrum has been pegged at Rs 7 lakh crore. That is seven times what the government received for 3G auction (Rs 1.04 lakh crore).

[caption id=“attachment_285269” align=“alignleft” width=“380” caption=“Reuters”]  [/caption]

•Broadly, the spectrum reserve price is seen at Rs 4,500 crore.

•Companies will be allowed liberalised usage of all kinds of spectrum.

•Auction to be open to all applicants.

•All spectrum should not be auctioned in one go. As a start, 5 Mhz of spectrum could be auctioned initially. Auctions could be phased out across three years.

More from Economy

Inflation likely to be a big focus area for budget 2024, say sources Explained: Will the Bank of Japan break tradition and raise interest rates?

•Annual usage charge for companies for all spectrum bought via auction to be 1 percent. Currently, the annual usage charge is 8 percent.

•Spectrum to be auctioned in blocks of 1.25 megahertz.

•About 100 Mhz to be auctioned in phases per telecom circle.

•The recommended reserve price for 700 megahertz (Mhz) is three times 3G reserve price. The reserve price for 900 Mhz is two times the 3G reserve price.

•Recommends auction of 30 Mhz of 700 Mhz band, 10 Mhz of 800 Mhz band, 15 Mhz of 900 Mhz band, 15 Mhz of 1800 Mhz, 5 Mhz of 2,100 Mhz and 20 Mhz of 2300 Mhz.

•Recommends 25 percent initial payment by telco companies, a two-year moratorium and rest of payment over 10 years. The only exception is in the auction of the 1,800 Mhz band, where 33 percent has to be paid upfront.