TRAI focuses on 2G auction

Winning spectrum auction will be crucial for these old operators if they want to see the continuity of their services in these circles. Most the spectrum which is expiring, is in 900 MHz, which is considered as an efficient band. The capex and opex in 900 Mhz band is lower than other bands. This is why, it is the most sought after frequency. Therefore, even new operators will try to win 900 Mhz spectrum. This could result in fierce bidding among the operators.

These licences were awarded in 1995/1996 and are due to expire in December 2015 and early 2016. These licensees hold spectrum in the 900 MHz and 1800 MHz bands.

Trai on Thursday came out with a consultation paper on the issue. Even Trai admitted that old telecom operators will have to fight hard to retain their existing spectrum. “In view of its better coverage and reach, spectrum in the 900 MHz band is far more efficient than that in the 1800 MHz band. Therefore, it is expected that most of telecom service providers participating in the auction will first try to bid for 900 MHz band spectrum,” said Trai.

“The situation becomes more serious considering the fact that in most circles, there is not much spectrum available in the 1800 MHz band either.”

Only in seven circles, the quantum of spectrum that can be put up for auction in the 1800 MHz band is 5 MHz or more. “Therefore, the incumbent telecom service providers will have no alternative but to try and win back spectrum in the 900 MHz band,” said Trai.

Trai has fixed September 8 as last date for receiving comments from stakeholders on the consultation paper, and September 15 for counter comments. Trai will hold open house discussions on September 22 to discuss the subject in details. In December 2015, 4 licences of Bharti Airtel, 7 each of Idea and Reliance and 6 of Vodafone will complete their 20-year term and would require renewal.