I am very happy to see that the TRAI has come up with a Partial Roadmap on the Availability of Telecom Spectrum in India and the likely dates when it will be put to Auction. However, disappointed to see that their are no provisions made for other sectors which may require spectrum. Nonetheless, this is a very good step that offers Telecom companies on how they can mark their strategies.
TRAI Roadmap on Telecom Spectrum Auction is as follows,
The Authority recommends that the sequencing could be as follows:
(a) 5 MHz of 1800 MHz band- This auction would be to establish the market value of spectrum. This could be done in the current year 2012-13 as early as possible.
(b) Allocation of additional 1.25 MHz spectrum to the holders of 4.4 MHz in 1800 MHz bands, subject to the legal opinion.
(c) Auction of spectrum in the 800 MHz band- This should also be done in the current financial year.
(d) Auction of spectrum in the 900 MHz band- This auction should be conducted in the first half of 2013-14 preferably in the first quarter so that there is adequate time for deployment as and when 900 MHz spectrum is available by November, 2014.
(e) Balance Spectrum in 1800 MHz band- This should be done in the first half of 2013-14
(f) Auction of Spectrum in 2100 MHz band – This should also be carried out in the second half of 2013-14.
(g) Auction of available spectrum in 700 MHz band- This should be carried out in the first half of financial year 2014-15.
(h) Auction of additional spectrum in 2300 MHz band- This should be carried out in the second half of financial year 2014-15.
3.118 The Authority recommends that the Department of Telecommunications should engage an auctioneer for a period of three years so as to conduct the auctions without delay.
So my views were Partially Accepted 🙂 Item 3 of my views to the TRAI. [PDF]
TRAI on Spectrum Pricing
TRAI has adopted the simplest formula which forms the basis of Radio Frequency – Lower the Frequency, better the reach, thsu higher the price. Baased on the above and its earlier recommendation that 1800MHz spectrum is indeed very valuable as it can be used for 2G as well as next generation 4G LTE deployments and since it is now being offered as Liberalized Spectrum, TRAI Recommended that the Reserve Price for 1800 MHz spectrum auction be Rs 3622 Cr / MHZ on PAN India basis. [This is almost double the price that I had recommended as reserve price. :-(] If this is accepted, in my view the auction will elicit poor response.
The following chart shows TRAI Recommended Reserve Price for 700 Mhz, 800 Mhz, 900 Mhz and 1800 Mhz Wireless Spectrum Auction in India
TRAI On Spectrum Refarming
The Authority therefore recommends that the refarming of spectrum in the 800 MHz and 900 MHz bands should be carried out progressively at an early date but not later than the due date of renewal of the licences. The spectrum available with the service providers in the 900 MHz band should be replaced by spectrum in the 1800 MHz band, which should be charged at the price prevalent at the time of refarming.
The Authority also recommends that the Government must actively explore the possibility of refarming of the spectrum in the 900 MHz band immediately, by invoking the authority to change the license conditions.
[I am Partially Correct with Item 18 of my Views]
So TRAI recommends that Government invoke the change in License Condition to pave way for Spectrum Refarming, which can land the matter in TDSAT.
Bottom line, All Telecom Spectrum allotted henceforth will be linked to the price determined in the Auction [Refer Item 7 of my views, :-)]
TRAI on Deferring Auction of Other Spectrum Bands
As seen in the TRAI Auction Roadmap, it has for now deferred Auction of other Spectrum Bands which was my view as well. Refer Item 3, 13, 17,18 and 24 :-)] TRAI will come up with separate consultation process then.
Stay Tuned for more updates!