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The Ministry of Communications and Information Technology is confident there will be bidders for the most lucrative spectrum band – 700 MHz – in the next round of auctions due to take place this year, despite concerns in the telecom industry that the reserve price is too costly.
“Spectrum is like land. It is a valuable commodity. The development of technology in the IT sector in India will always put a pressure on spectrum. We are very confident that if it is on offer, people will come and buy it,” a senior official of the Ministry said. The Telecom Regulatory Authority of India (TRAI) had last week recommended a spectrum reserve price for the upcoming auctions, keeping it at ₹11,485 crore per megahertz for the 700 MHz band.
Soon after the announcement, Bharti Airtel told its investors during a post-results earnings call that it considers the reserve price too high and may not be able to bid at that price.
The official added, “Also, let’s not forget that the price that is payable is over a long-term period. It is not that the entire payment is sought upfront.”
Meanwhile, the Ministry expects to conduct the auctions by May-June 2016.
“The auction process requires the appointment of an auctioneer. Appointing the auctioneer needs a fair time frame for proper tendering. We tried to do it as early as possible but doing it before March 31 is just not possible. Realistically, we can look at May or June for the auctions to take place,” the official said.
Refurbished iPhones The Ministry plans to hold wide-ranging stakeholder discussions regarding a possible policy allowing refurbishing and selling of used mobile phones.
It is understood that global smartphone giant Apple has sought permission to manufacture and sell refurbished iPhones.
The application will need to be reviewed by the Ministry of Environment, Forests and Climate Change as it relates to electronic waste.
However, the Ministry of Communications and Information Technology official said, “Before we come with a policy regarding sale of refurbished phones, we need inputs from all stakeholders. Why should only one company be allowed to do so? Why not others? These are important questions that need answers.”
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