The empowered group of ministers (EGoM) on telecom is expected to take a call on the auction of CDMA spectrum for which Trai has not recommended any reserve price in its meeting on Friday.
Even on refarming and sale of spectrum in the 900-Mhz band, the EGoM will take a final call since there is no Supreme Court directive to auction these radiowaves. According to the EGoM meeting agenda the auction of 900 Mhz spectrum was only an administrative decision of DoT. The agenda also says that “there were no bidders for the 900-Mhz band during March 2013 auctions”.
The decision on these two bands becomes important considering that GSM player Vodafone has offered to pay R4,000 crore to retain its quantum of 900 Mhz spectrum in three circles — Delhi, Mumbai and Kolkata. CDMA operator Sistema Shyam has been lobbying with the government to hold another round of auction for the 800-Mhz band. It contends that Trai’s proposal of not holding any auction for 800 Mhz spectrum is discriminatory as the company’s expansion would be hit while its rivals Vodafone, Reliance or Tatas enjoy fresh spectrum in the bands they used.
The Supreme Court had last year directed the government to re-sell all spectrum vacated due to cancellation of 122 licences acquired in 2008.
This order covers only spectrum in the 1800-Mhz band.
Last week, the telecom commission had asked Trai to recommend the reserve price for the 800-MHz band within 15 days after Sistema Shyam? the Indian arm of Russian telecom major Sistema ? contested the regulator?s ruling that the 800-MHz band need not be put up for sale.
Telecom commission, which is the highest decision-making body of DoT, has proposed around 50% reduction in auction base price for 1800 and 900 Mhz spectrum from prices fixed during March auctions.
The government is keen on earning non-tax revenues from sale of spectrum to curb its expanding current account deficit.
Spectrum auctions are expected to be started in January 2014 .
