With the last date for filing applications for spectrum auction finally ending on Wednesday, Telecom Secretary MF Farooqui said that in all eight operators have applied. Starting for February 3, the Government is confident of raising Rs 11,343 crore from the auction of spectrum in 900 mega hertz (MHz) and 1800 MHz band, Farooqui added.
Eight telecom operators include Vodafone and Bharti Airtel as their licences are due to expire in 2014. Reliance Jio Infocomm also submitted its applications for spectrum auction on Wednesday.
“Eight applicants have applied. The auction will be successful, that is what we believe,” Telecom Secretary M F Farooqui said. He further said, “From the sale of spectrum in the current year, the Budget has provided for Rs 11,343 crore. We will exceed that.”
Overall, the Government has set a revenue target of Rs 40,874.50 crore for this fiscal from the auction amount, one-time spectrum charge and annual regular licence fee. While naming all the operators, source said that Vodafone had filed the first application, followed by Airtel, Aircel, Tata Telservices, Idea Cellular, Reliance Jio infocomm (RJIl), Telewings (Uninor) and Reliance Communications.
State-owned Bharat Sanchar Nigam limited and Mahanagar Telecom Nigam limited have not applied for the bidding. On the other hand, RJIl which currently holds only broadband wireless access (BWA) spectrum has also applied for GSM radiowaves in both the bands 900 MHz and 1800 Mhz bands.
Vodafone’s three permits in Delhi, Mumbai and Kolkata along with Airtel’s in Delhi and Kolkata, and loop Mobile’s one in Mumbai are due to expire November, 2014.
The applications come amidst uncertainty on a number of issues such as spectrum usage charge, merger and acquisition guidelines, spectrum sharing and its trading. Farooqui said that all the issues will be resolved before the auction.
Meanwhile, loop Mobile MD and CEO Sandip Basu said that the company has filed an application before telecom tribunal TDSAT for extension of lincence. He added, “If we get the licence extension, we are willing to pay market determined price. If have filed application before TDSAT which will be heard.”
Earlier, Videocon Telecom CEO and Director, Arvind Bali had expressed desire to expand company’s operation to Delhi as well and had said that it might bid for spectrum this time. Making clear company’s final stand, Bali in its statement said that despite being quite keen to bid for 900 MHz spectrum in Delhi, the company has decided to remain absent for the upcoming auction.
January 15 was the last date for submitting the applications and companies have the option to withdraw them by January 27. In the last round of auction held in March 2013, none of the GSM operators had bid for spectrum, citing high reserve or base price.
The Cabinet has fixed the base price for sale of spectrum in the 1800 Mhz band for pan-India at Rs 1,765 crore per MHz, about 26 per cent lower than in the March sale. For the 900 MHz band, it approved a rate up to 53 per cent lower than the previous auction price. It is Rs 360 crore per MHz for Delhi, Rs 328 crore for Mumbai and Rs 125 crore for Kolkata.