Govt begins moves to hold 2G spectrum auction in Nov

New Delhi: The Department of Telecom (DoT) today issued the much-awaited Information Memorandum (IM) on the proposed auctions in 1800 Mhz and 800 Mhz bands. A notice inviting applications (NIA) has been promised within a month.
An IM informs all potential bidders about the rules and eligibility criteria for the auction so that they can plan their auction strategy as well as the business case for the spectrum to be auctioned.
A senior DoT official explained that the IM has been issued  early to make sure that auctions happen on time but the IM is still subject to the Supreme Court agreeing to the government’s proposal to extend the auction timeline to November-December. Earlier, the apex court had set 31 August as the deadline for completion of auctions, and this deadline has already been breached.

NIA is the final document issued by the government before auctions commence. Reuters

“We are not running ahead of the SC, we are waiting for its decision. The IM does not signal anything unless the NIA is issued, which will take a month. By then, we will have done a pre-bid conference, addressed queries from potential bidders and issued clarifications on a lot many things,” this official told Firstpost.
NIA is the final document issued by the government before auctions commence. All prospective bidders have to apply and their applications are scrutinised for eligibility to participate before the auction is finally held. There is a general feeling that the auction process could spill over to January next year if the SC approves the new timeline proposed by DoT.
According to the IM, NIA will be issued on 28 September and the last date for submission of applications would be 19 October. E-auctions begin for 2G, or the 1,800 Mhz band, on 12 November but they will be held for the 800 Mhz band only two days after the 2G auctions have closed.
The IM makes it clear that a minimum of eight blocks each of 1.25 Mhz (10 Mhz in all) will be put to auction in all service areas. In addition, a provision will be made for spectrum up to three blocks each of 1.25 Mhz  (3.75 Mhz), wherever available, after reserving spectrum for refarming against allocation in the 900 Mhz band for the licences expiring during 2014 to 2016 and also taking care of guard-band requirements (a guard band is a narrow non-allocated band between two frequencies to ensure that usage on one frequency does not impact the neighbouring band).
This means topping up the eight blocks of spectrum put to auction up to a total of 11 blocks each of 1.25 Mhz to meet the requirements of new entrants, if such an exigency arises, and to ensure that the entire quantum of spectrum of 10 Mhz in each service area is allocated in the auction.
Incumbent telcos will be allowed to take a maximum two blocks of 1.25 Mhz in each service area.  New entrants will be required to bid for a minimum of four blocks each of 1.25 Mhz in each service area. New entrants will also be allowed to bid for one additional block of 1.25 Mhz in each service area.

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