Spectrum Auction: 1800MHz begins on 12th-Nov with Artificial Scarcity + Reserve Prices & Timeline – Key Highlights

The Indian Government under the shady Leadership of Dr. Singh [Prime Minister, Silent Witness to the 2G Scam] and Mr. Kapil Sibal [Protecting the Looter with Zero Loss Theory] have issued the Information Memorandum of Spectrum Auction which is slated to begin from Nov-12th, 2012. By the 21st of October, we will know who all are in race for the Spectrum. Here is the brief timeline of the 2012 Spectrum Auction in 1800MHz and 800MHz

Last date for submission of Applications – 19th October, 2012
Publication of ownership details of Applicants – 21st October, 2012
Final List of bidders – 6th November, 2012
1800Mhz Auction Begins on -12th November, 2012
800MHz Auction – 2 Days after the conclusion of 1800MHz

Why the Artificial Scarcity ?
I’m not sure why the Government is creating Artificial Scarcity by putting to auction just 8 Blocks of 1.25MHz Spectrum i.e 10 MHz in 1800 band and it is a chaos in 800Mhz band as their is no spectrum on the auction block in Rajasthan and only 1 Block available in Andhra Pradesh and Punjab as shown below.

Spectrum Auction Reserve Price
The Reserve price of Spectrum in 1800Mhz and 800Mhz band is same as what I have already published.

Other Key Highlights of the Information Memorandum are,

  • No 100% FDI in Telecom. Foreign Bidders have to choose an Indian Partner for picking up 26% stake
  • DoT Silent on Liberalized Spectrum or Not. That means DoT agree that all Spectrum existing and that shall be auctioned is going to be liberalized as per TDSAT Order ?
  • Only 2 New Entrants can be accommodated in 1800MHz Band
  • Only 1 new Entrant can be accommodated in 900MHz Band
  • Spectrum for Backhaul Use Requires Permission – Payment of the Successful Bid Amount does not grant usage rights to such backhaul spectrum. Separate charges, as applicable, are payable for backhaul spectrum.
  • Spectrum to be allocated for 20 years
  • Yearly fees based on AGR of the operator varies from 3% to 10%
  • Active infrastructure sharing limited to antenna, feeder cable, Node B, RAN and transmission systems only and excluding spectrum has also been permitted now and the requisite amendments would be made to the UAS licence shortly.
  • Spectrum Payment – An upfront payment of 33% in the case of 1800MHz spectrum and 25% in the case of 800MHz spectrum of the final bid amount of one time charges for the spectrum be made within 10 days. There shall be a moratorium of 2 years for payment of balance amount of one time charges for the spectrum, which shall be recovered in 10 equal annual installments.