The telecom regulator has proposed a 50 per cent increase in the reserve price to Rs 2,685 crore per MHz in the 800 MHz band. This frequency band is currently being used for CDMA mobile service but TRAI said that pricing should be higher as it can be used for data services using 3G and 4G technologies.
In the auctions held in March 2013, the reserve price was set at Rs 1,820 crore per MHz. Only Sistema Shyam had participated in that auction and won spectrum at base price in 8 circles.
The new pricing is however lower than what TRAI had suggested in 2012.
a. The DoT should take back from MTNL its entire spectrum holding in the 800 MHz band,
b. BSNL should be allowed to retain only one CDMA carrier in all the LSAs except in Jammu and Kashmir, Assam and North-East LSAs, where it can retain both the carriers. The DoT should take back other carriers assigned to BSNL in the 800 MHz band.
c. The entire available spectrum with DoT in the 800 MHz band should be put to auction.
d. At least one chunk of contiguous 5 MHz spectrum (i.e. 4 carriers) should be carved out before the auction. The carrier reassignment, if required, may be carried out amongst the existing TSPs in the 800 MHz band to make at least 4 contiguous carriers available. Alternatively, the NIA for the auction may clearly stipulate that only contiguous blocks of 5 MHz will be sold. However, the reconfiguration of the frequencies should be worked out while auction is underway so that the reassignment is possible to be effected on completion of the auction.
e. Spectrum in the 800 MHz band should be auctioned in a block size of 1.25 MHz.
f. A new entrant i.e. a TSP which does not have any spectrum holding in the 800 MHz band must bid for a minimum of 4 carriers. However, an existing TSP i.e. a TSP having some spectrum holding in the 800 MHz band should be permitted to bid for a minimum 1 block of spectrum. New entrants must be assigned the earmarked contiguous carriers only.