India’s Union Cabinet has approved the proposal of the Department of Telecom to proceed with an auction of frequencies in the 800, 900 and 800 MHz bands. The reserve price approved is INR 36.46 billion per MHz for pan-India frequencies in the 800 MHz, INR 39.80 billion for the 900 MHz band excluding Delhi, Mumbai, Kolkatta and J&K, and INR 21.91 billion excluding Maharashtra and West Bengal for the 1,800 MHz band.
India will auction a total 103.75 MHz of spectrum in the 800 MHz band in all service areas, 177.8 MHz in 17 regions in the 900 MHz band and 99.2 MHz in 15 regions in the 1,800 MHz band. The Indian government will thus offer a total of 380.75 MHz of spectrum for mobile operators.
Payment terms, eligibility criteria and auction objectives will be similar to those in the February 2014 auction. The Cabinet also intends to put spectrum in the 2,100 MHz band to auction at the same time, depending on the availability of certain frequencies. Further details are expected to be announced at a later date.
The estimated revenues from this auction are INR 648.4 billion (excluding 2,100 MHz spectrum) of which INR 160 billion is expected to be realized in the current financial year.