The auction is expected to fetch over Rs 45,000 crore to government if all the airwaves for which bids are invited are sold at base price. Issuing the NIA, the DoT said last date for submission of applications is February 22 while the final list of bidders will be out by March 6.
Mock auction will take place on March 8-9 and auction process for 1800 MHz and 900 MHz will commence on March 11, NIA said. Auction of 800 MHz will start two days from the close of first auction, it added. In order to ensure aggressive bidding, the government has removed restrictions on the number slots that a company should be allowed to bid in the auction for both CDMA and GSM spectrum.
In the last auction held in November, new operators were mandatorily bid for a minimum of 4 blocks of 1.25 MHz each and a maximum of five for GSM spectrum. It was a minimum of two and a maximum of three in case of CDMA airwaves. The government will put 12 blocks of 1.25 MHz each in Delhi and Mumbai for 1800 MHz and 900 MHz while 10 blocks in 900 MHz will be put on the auction table for Kolkata.
In Karnataka and Rajasthan, 8 blocks of 1.25 MHz each (10MHz) is being put to auction while additionally, a provision is also made available for spectrum up to three blocks each for topping up. For 800 MHz auction, 3 blocks each of 1.25 MHz (3.75MHz) is being put to auction. "In addition, a provision has been made for spectrum of one block, wherever available, for topping up the 3 blocks of spectrum put to auction, to meet the requirement of new entrants, if such an exigency arises," the NIA said.
In the second round of auction, government will put unsold GSM spectrum in 1800 Mhz band and airwaves held by telecom licences in 900 Mhz band that is coming for renewal starting 2014 onwards. Government had slashed base price of CDMA spectrum by 50 per cent and for unsold GSM spectrum by 30 per cent. The price of spectrum in 900 Mhz has been fixed at two times the price of airwaves in 1800 Mhz.
The government has also given the option of deferred payment to the successful bidders. "An upfront payment of 33 per cent in the case of 1800MHz band and 25 per cent in case of 900MHz and 800MHz band of the final bid amount shall be made within 10 days of declaration of successful bidders and final price," the NIA said.
"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 instalments," it added.
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