Bids for spectrum auction will start from March 1, the aspirants expect cheaper services
The process of bidding for radio waves worth Rs 3.92 lakh crore in the sixth round of spectrum auction will start from March 1, 2021. The Department of Telecommunications has disclosed the Earnest Money Deposit (EMD) deposited by the telecom companies for this. It has become clear that telecom companies will not bid very high for spectrum this time. In such a situation, the general consumer can expect that the telecom services will not have to pay much money at the moment.
Companies not in a mood to pay a high price for spectrum
In fact, in 2014 and 2015, the financial condition of the telecom companies was very good, due to which there was a fierce competition for spectrum between them. Vodafone, Idea and Airtel then had high bids. But now it’s not like that. In this case, most of the spectrum is expected to be sold at the base price.
Companies can use spectrum in 5G service trials
In the notice issued by the Department of Telecommunications, it was said that this spectrum auction was long-awaited. The auction is going to be held after four years and it will be two years after the Telecom Regulatory Authority of India (TRAI) has calculated and suggested the base price. The auction is also considered as the initial step of 5G. Companies will be able to use the two spectrum found in this auction in the trial of 5G service.
The Union Cabinet had approved the auction of 2,251.25 MHz spectrum worth Rs 3.92 lakh crore in the seven frequency band on 17 December 2020. In this round, the auction was approved at the base price suggested by TRAI in 700 MHz, 800 MHz, 900 MHz, 2100 MHz, 2300 MHz and 2500 MHz. The government, however, kept the 3300-3600 MHz band out of the auction this time. The industry has been describing this frequency as suitable for 5G services. This band was also included in TRAI’s suggestions.
A credit rating agency had said that it does not think there is going to be any notable bid in the 700 MHz category. The agency estimates that the bids will be between 55 thousand to 60 thousand crores.
