The Department of Telecommunications (DoT) on Tuesday said that the auction for 800 Mhz spectrum will begin March 11. The last date for receipt of applications was 25.2.2013.

While SSTL has emerged as the sole bidder for 800 MHz spectrum, the there were no takers for for1800 & 900 MHz spectrum as the telcos like Airtel and Idea found the reserve price too high.

The empowered Group of ministers (EGoM) will now decide on the issue arising from the telcos staying away from bidding in 1800 and 900 MHz spectrum. Many experts feel that the reserve price in this segment may further go down.

“Next steps in respect of the 1800 and 900 MHz spectrum will be decided shortly after placing the developments and issues arising there from before the EGOM on auction of spectrum. A third auction (after the 1st auction in November, 2012 and the second auction due to commence on March 11, 2013) was already announced by the DOT on 20.2.2013 consequent to the SC directions dated 15.2.2013” DoT said in statement.

It said that the third auction was to cover only the 1800 MHz band to comply with the SC directive to put the entire spectrum surrendered (which was entirely either in the 1800 or 800 MHz bands) by holders of quashed licenses to auction immediately. This would, in any case, have necessitated auction in 20 of the 22 circles wherein the quantum of spectrum put to auction was less than what the SC had directed on 15.2.2013 after the issue of the NIA for the March, 2013 auction. In Delhi and Mumbai circles, the quantum of spectrum put to auction in March, 2013 was already in accordance with the latest orders of the SC dated 15.2.2013. This was also the case in respect of spectrum in the 800 MHz band both in the November, 2012 auction and again in the March, 2013 auction.

In the light of these developments, DOT will review the need to include the remaining 2 circles for 1800 MHz bands, namely Delhi and Mumbai in the next round of auctions as also the need for a re-auction in the 3 metro circles of the 900 MHz band. The quantum of spectrum, the reserve price and the timelines for this auction will be decided after necessary directions are obtained from the EGOM and where required, the cabinet, in this regard.

DOT is also in the process of filing an affidavit of compliance in the SC regarding implementation of its orders dated 15.2.2013. Any further directions issued by the SC in the matter will be incorporated into the plan of action for the next round of auction to be held as soon as possible after the March 11, 2013 auction is completed.

Separately, the DOT will also take action as directed by the Delhi HC to dispose of the applications for extension of licenses received from licensees whose licenses are due to expire in Nov 2014. This action will be completed before the timeline fixed by the High Court of Delhi, i.e., 7th March, 2013.
 
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