Trai issues consultation paper for spectrum auction ahead of sale of airwaves

New Delhi: Setting the stage for the next round of spectrum auction, Trai today launched consultation process to seek inputs on quantum, pricing and methodology for sale of airwaves in all seven bands. This could be the biggest auction of spectrum in terms of quantum of frequencies put on sale in seven bands, that include 700, 900, 2100 and 2300 Mhz.[caption id=“attachment_2069915” align=“alignleft” width=“380”]  Spectrum issues. Reuters[/caption] The government will be auctioning spectrum in 700 Mhz band for the first time, considered prime band for long term evolution (LTE) technology. Trai said that 35 Mhz (paired) spectrum is available for commercial purpose in each of the 22 service areas in the 700 Mhz band, as per the information provided by DoT. Eight licences, including two of MTNL’s, will be expiring in 2017-18. Even as Trai today started the consultation process, sources had told PTI earlier that the auction was unlikely be held this fiscal due to delay in recommendations over spectrum sale by the regulator. Clarifying its position over delay in launch of consultation paper, and hence the auctions, Trai said the information sent by the Department of Telecom (DoT) on 9 July was not sufficient. DoT on 9 July communicated that it was planning for auction of right to use of spectrum in 700 Mhz, 800 Mhz, 900 Mhz, 1800 Mhz, 2100 Mhz, 2300 Mhz and 2500 Mhz in the forthcoming auction, Trai said. Trai said it on 24 July sought information which was critical in nature for preparation of the consultation paper. “DoT provided certain information through their letter dated October 16. This information in also not complete. Therefore, another letter was sent to DoT on November 16… however, to save time, the Authority has decided to issue the consultation paper based on available information,” Trai said. In the previous auction held in March this year, a record 470.75 MHz of spectrum was put on sale in various service areas in 800, 900, 1800 and 2100 bands. Previously, the DoT had put on offer 426 MHz of spectrum in February 2014 sale, while 390 MHz in various bands during November 2012 auction. Regarding 800 Mhz band, DoT proposes to auction 37.5 MHz out of total 76.25 MHz available spectrum. Trai is seeking comments if the entire spectrum available with DoT in the 800 MHz band be put on auction and how can the spectrum, which is not proposed to be auctioned due to non-availability of inter-operator guard band, be utilised. In the premium 900 Mhz band, 9.8 Mhz will be auctioned whereas in 1800 MHz band, 17.6 MHz would be available. MTNL holds 6.2 Mhz spectrum in 900 Mhz band and 2.2 Mhz in 1800 MHz each in Delhi and Mumbai circles. Its licence expires on October 2017. But DoT has informed that decision on not putting these spectrum chunks allotted to MTNL in auction is under consideration and therefore it has been excluded from the spectrum availability. As there is no other licence having spectrum in 900 MHz band expiring during 2016-18, only unsold spectrum in 2015 auctions would be available with DoT for sale. Regarding 1800 Mhz band, operators whose licences are due for expiry during May 2016-18 hold 30.8 MHz spectrum. In 2100 Mhz band, a total of 345 Mhz spectrum is available for auction of which 15 MHz was left unsold in the previous auction while 330 MHz will become available due to vacation by the defence. In 2300 MHz band, DoT has intimated about availability of one more block of 20 MHz in 16 service areas whereas in 2500 Mhz band, 600 Mhz is available. The regulator has sought stakeholders comments on issues like quantum of spectrum to be auctioned, spectrum block size, spectrum cap, roll-out obligations and methods to be used for valuation and estimation of reserve price of spectrum. Stakeholders can send their written comments by 21 December and counter-comments by 28 December. “Stakeholders are requested to send their comments by due dates as there will be no extension of timelines,” Trai said. PTI