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Union Cabinet approves spectrum auctions, no 5G airwaves to be sold
December 17, 2020
The Union Cabinet on Wednesday approved a round of auctions for spectrum to telecom operators, to be held in March 2021. A total of 2,251.25 MHz of spectrum is up for auction at a reserve price of ₹3.92 lakh crore. No 5G spectrum is up for auction in this round, where telcos are more likely to spar over additional spectrum to boost their airwaves to better manage existing 4G data demand.
“The auction will be for spectrum in 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz and 2500 MHz frequency bands. Spectrum will be offered for assignment for validity period of 20 years. A total of 2251.25 MHz is being offered with total valuation of Rs. 3,92,332.70 crore (at reserve price).” Government statement
The government will auction 2,251.25 megahertz of spectrum by March across seven frequency bands but not the much coveted 5G spectrum at an aggregate base price of Rs 3.92 lakh crore as the Narendra Modi-government looks to boost its revenues left dry by the pandemic.
The Union cabinet on Wednesday approved the sale, the first in four years. The telecom ministry plans to issue a notice to invite bids in December and hold the sales by March, telecom minister Ravi Shankar Prasad told reporters after the meeting.
In Union Budget 2020-21, the government had targeted revenues of Rs 1.33 lakh crore from telecommunication services, which include spectrum auction proceeds, licensing fees and other receipts.
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