"Large chunk of spectrum is being put for auction which aims to address issue of fragmentation, improve quality of service, and rules have been made bidder friendly," Telecom Secretary J S Deepak said while releasing the bid document called the Notice Inviting Application (NIA).
The government will put a total of 2,354.55 megahertz of mobile airwaves frequencies for auction in all band -- 700 Mhz, 800 Mhz, 900 Mhz, 1800 Mhz, 2100 Mhz, 2300 Mhz and 2500 MHz. All the airwaves being put for auction can be used for high speed 4G services.
"Quantum of spectrum is favourable. There are positives including the fact that contiguous spectrum is now available in all bands, and lock in period has been reduced to one year," Industry body COAI Director General Rajan S Mathews said.
But pricing of 700 Mhz is a concern, he said. "We see relatively good demand for 1800 Mhz band, some demand for 2100 and 2300 Mhz band. Limited demand for 700, 800 and 900 Mhz bands. I will be surprised if there are any takers for 2500 Mhz band," Mathews added.
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"700 MHz is the top quality spectrum. It has beaten gold so it is expensive. We will wait for the auctions to see what the response is," Deepak said.
The government has relaxed equity lock-in period. This will free company, whose networth has been used to procure spectrum, to exit from the company in one year as against year years prescribed earlier.
"The roll out obligation will be considered complete if the district headquarters and block headquarters are covered by use of any technology in any band. In the sense that if a district headquarter is covered through one technology it does not have to be done by other technology," Deepak said.