Cabinet clears spectrum auction

#GS2 #GOVERNANCE

The Union Cabinet approved the auction of 2,251.25 megahertz of spectrum with a reserve price of ₹3.92 lakh crore, a move that should help boost the quality of 4G telecom services in the country.

  • Spectrum in the frequency bands of 700MHz, 800MHz, 900MHz, 1,800MHz, 2,100MHz, 2,300MHz and 2,500MHz would be offered for 20 years.

 

Network boost

  • By winning right to use spectrum through the auction, incumbent telecom service providers will be able to augment their network capacity, whereas new players will be able to start services.
  • Successful bidders would have the option of paying the entire amount upfront or a certain amount in 16 equated annual instalments after a two-year moratorium. 
  • They would also have to pay 3% of the adjusted gross revenue, excluding wireline services, as the spectrum usage charge
  • The auction would help boost spectrum availability with telecom operators enabling improvements in 4G services.
  • Spectrum holding per operator in a service area in our country is well below the international average. So any further auctioning of spectrum is welcome.
Print Friendly and PDF
blog comments powered by Disqus