TRAI proposes 2G auction price higher than 3G

New Delhi: The Telecom Regulatory Authority of India (TRAI) has proposed a base price for auction of 2G spectrum that is higher than the 3G auction price set in 2010, reports CNBC-TV18 quoting sources.

For the 900 mega hertz band, the telecom regulator has proposed a base price at Rs 7000 crore, which is twice the base price set for a 3G spectrum. For 700 megahertz band, it has been set at Rs 14,000 crore which is 4 times the 3G reserve price.

Recommendations:

Reserve price

- Broadly 2G spectrum reserve price seen at Rs 4,500 cr

- Reserve price at 1.08x of 3G reserve price of Rs 3,500 cr

- Reserve price of 900 Mhz a 2x of 3G reserve price

- Reserve price of 700 Mhz a 4x of 3G reserve price

Spectrum allocation

- Auction of 900 Mhz band in H1FY14

- Auction of 2100 Mhz band in H2FY14

- Auction of 700-1,450 Mhz bands in FY15

- Around 100 Mhz be auctioned in phases per circle

- 30 Mhz of 700 Mhz band, 4-10 Mhz of 800 Mhz band

- 15 Mhz of 900 Mhz band, 15 Mhz of 1,800 Mhz band

- 5 Mhz of 2,100 Mhz band, 20 Mhz of 2,300 Mhz band

Qualifiers:

- 2G spectrum auction to be open to all applicants

- Spectrum to be auctioned in blocks of 1.25 Mhz

- 5 Mhz to be offered as start-up spectrum

- Liberalising usage of all spectrum

- Multiple round, ascending bid auction

- Immediate reframing of 900 Mhz spectrum

- Limited spectrum trading among companies

- Deferred payment for 700, 800, 1900 Mhz bands

- 2 year moratorium, 25 per cent payment initially, rest over 10 years

- For 1800 Mhz band, 33 per cent payment initially, rest as other bands

- Annual usage charge for all auctioned spectrum to be 1 per cent

- Non-auctioned spectrum charge as per current levy

- Pegs value of spectrum at Rs 7,00,000 cr

- All spectrum not to be auctioned in one go

- Spectrum auction to be phased out over 3 years