The Telecom Commission has finalised the reserve prices for spectrum in the 800 MHz, 900 MHz and 1800 MHz bands, for the upcoming auctions in February 2015. The commission has approved a pan-India reserve price of Rs 36.93 billion per MHz of spectrum in the 900 MHz band, Rs 21.91 billion in the 1800 MHz band, while fixing Rs 36.46 billion for the 800 MHz spectrum band. The commission’s decision will now be placed before the Ministry of Communications and IT for the final approval.
The commission went with the recommendations of the Department of Telecommunications (DoT) committee that valuation of spectrum in the 900 MHz band should not be capped at twice the valuation of 1800 MHz spectrum, as was suggested by Telecom Regulatory Authority of India (TRAI). The base prices recommended by the TRAI were Rs 30.04 billion for the 900 MHz spectrum band, Rs 21.91 billion for 1800 MHz spectrum while Rs 31.04 for 800 MHz spectrum band.
Meanwhile, it did not take any decision on TRAI's recommendation to take back spectrum from Bharat Sanchar Nigam Limited (BSNL) in the 900 MHz band. However, the commission agreed with the regulator’s recommendations that auction in the 1800 MHz band in Maharashtra and West Bengal services should not be conducted owing to availability of spectrum. It also accepted TRAI’s recommendations for a discount of 30 per cent on reserve price in 1800 MHz spectrum band in Rajasthan circle and a discount of 50 per cent in the north-east circle in 900 MHz and 1800 MHz bands.