TRAI Recommends DoT Reclaim Spectrum From Insolvent Telcos For Upcoming Auction
“Entire available spectrum in the 600 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz and 26 GHz frequency bands should be put to auction in the forthcoming auction” : Ministry of communications
NEW DELHI: Telcom watchdog Telecom Regulatory Authority of India (Trai) on Tuesday recommended that department of telecom (DoT) should immediately initiate action for taking back the spectrum held with the telecom service providers, which are engaged in corporate insolvency resolution process under Insolvency and Bankruptcy Code, 2016, and such spectrum should be put to auction in the forthcoming spectrum auction.
Issuing a host of recommendations on auction of frequency bands, including its reserve prices, band plans, among other key details for the upcoming spectrum auction of the International Mobile Telecommunications (IMT) network, the regulator said that it finalised its recommendations on the auction of radio frequency spectrum in the frequency bands identified for IMT after receiving comments from stakeholders during the consultation process.
This move comes after the DoT requested Trai to provide suggestions for applicable reserve price, band plan, block size, quantum of spectrum to be auctioned, and associated conditions for auction of spectrum in the existing bands. “Entire available spectrum in the 600 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz and 26 GHz frequency bands should be put to auction in the forthcoming auction,” the ministry of communications said in a statement.
“The department of telecom should also immediately initiate action for taking back the spectrum held with the telecom service providers, which are engaged in corporate insolvency resolution process under Insolvency and Bankruptcy Code, 2016, and such spectrum should be put to auction in the forthcoming spectrum auction,” the ministry said.
The regulator further suggested that for participation in the forthcoming spectrum auction, the eligibility conditions, as prescribed in notice inviting application (NIA) 2024, should be continued for all frequency bands identified for IMT ie; authorisation for access service. “The net-worth requirement should be reduced from Rs 100 crore per licensed service area to Rs 50 crore per licensed service area (for Jammu & Kashmir and North East licensed service areas from Rs 50 crore to Rs 25 crore each) for new entrants in the forthcoming auction of IMT spectrum,” Trai said.
It also suggested that simultaneous multiple round auction (SMRA)-based spectrum auction should be continued. “To the extent possible, the TSPs should be assigned spectrum in a contiguous manner and DoT should carry out harmonisation exercise immediately after conducting the auction, and such exercise should be completed within a time frame of not more than six months from the date of conclusion of the auction,” it said.