Possibility of auction derailed again

The Defence Ministry has recently sought allocation of 100 MHz in 3300-3400 Mhz band, for the Indian Navy. The total quantum available with DoT is 300 MHz. Out of the 300 MHz, 25 MHz is reserved for the Department of Space. This leaves only 175 MHz for telecom operators, which is grossly inadequate.

The auction has planned for the sale of 8303.05 MHz of airwaves, including 5G spectrum in the 3.3-3.6GHz band and 4G spectrum in the 700MHz, 800MHz, 900MHz, 1800MHz, 2100MHz, 2300MHz and 2500MHz bands. The amount anticipated to be raised is Rs 5.23 trillion, if the airwaves are sold at their base price. All three operators have often stated that the base price, Rs 4.92 billion a unit, is too high and not financially viable.

The other major issue is the lack of clarity on whether Chinese vendors, Huawei and ZTE can deploy their next generation mobile communication standard technology in India. Also DoT is yet to appoint an auctioneer.

However, DoT cannot delay the sale of spectrum indefinitely as Bharti Airtel and Vodafone Idea will need to buy back their expiring airwaves around September-October 2021, in eight circles each but mostly in 1800 MHz band, also used for 4G, and Reliance Jio’s 4G spectrum in 800Mhz band, operated under a spectrum sharing pact with Reliance Communications, will expire in 18 circles in July-August 2021.

Maybe DoT will split the next telecom spectrum auctions by offering 4G airwaves this year and 5G in 2021.

—CT Bureau