TRAI releases recommendations on Auction of Spectrum

The Telecom Regulatory Authority of India (TRAI) has released recommendations on "Auction of Spectrum in 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300-3400 MHz and 3400-3600 MHz Bands".

Department of Telecommunications (DoT) vide its letter No. dated 19th April, 2017 requested TRAI to provide applicable reserve price, quantum of spectrum to be auctioned and associated conditions for auction of spectrum in 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300-3400 MHz arid 3400-3600 MHz Bands for all the LSAs under the terms of clause 11 (1) (a) of TRAI Act, 1997 (as amended).

The salient features of the recommendations are given below:

• Entire available spectrum should be put to auction in the forthcoming auction.
• Barring the specific locations or districts where ISRO is using the 25 MHz (3400 MHz - 3425 MHz) of spectrum, the entire spectrum from 3300 MHz to 3600 MHz should be made available for access services and should be included in the forthcoming auction.
• 3300-3600 MHz should be auctioned as a single band and TDD based frequency arrangement should be adopted for this band.
• Spectrum in 3300-3600 MHz band should be put to auction in the block size of 20 MHz. To avoid monopolization of this band, there should be limit of 100 MHz per bidder. Since the TSPs are allowed to trade their partial or complete spectrum holding to another TSP, the limit of 100 MHz spectrum in 3300-3600 MHz band, shall also apply for spectrum trading. In case a TSP acquires more than one block, the entire spectrum should be assigned to it in contiguous form.
• No roll out obligations should be mandated for spectrum in 3300-3600 MHz band. However, to avoid any misuse of not mandating any roll-out obligations, the lock-in period for spectrum in this band for becoming eligible for spectrum trading should be 5 years instead of 2 years.
• The revised provisions of spectrum cap (i.e. 35% Overall cap and a Cap of 50% on the combined spectrum holding in the sub-1 GHz bands) should be extended to 3300-3600 MHz band also. Additionally, in 3300- 3600 MHz band, there should be a spectrum holding cap of 100 MHzper licensee.
• There is an urgent need of audit for all allocated spectrum both commercial as well as spectrum allocated to various PSUs/ Government organizations. This should be done by an independent agency on a regular basis.

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