India’s 2G auction rules announced

India’s 2G auction rules announced

The Indian Department of Telecommunications has announced long awaited guidelines for the re-auction of 2G spectrum, following the cancellation of 122 2G licences in February by the Supreme Court.

Spectrum in the 1800MHz and 800 MHz bands will be auctioned in blocks of 1.25MHz. In the 1800 MHz band there will be a minimum of eight blocks of 1.25MHz auctioned in all service areas with three additional blocks reserved for new entrants if necessary. In the 800MHz band, three blocks of 1.25% MHz will be auctioned.

Existing operators in the country will be able to take a maximum of two blocks of 1800MHz spectrum and one block of 800MHz. New entrants will be required to bid for a minimum of four 1800MHz blocks and two 800MHz blocks.

TRAI, India’s telecoms regulator has been criticised for recommending a reserve price almost 10 times that which operators paid in the 2008 auction.

The department said that the reserve price and terms of payment would be announced at a later date.

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