This could be the biggest auction of spectrum in terms of quantum of frequencies put on sale in seven bands, that include 700, 900, 2100 and 2300 Mhz.
The government will be auctioning spectrum in 700 Mhz band for the first time, considered prime band for long term evolution (LTE) technology.
Trai said that 35 Mhz (paired) spectrum is available for commercial purpose in each of the 22 service areas in the 700 Mhz band, as per the information provided by DoT.
Even as Trai today started the consultation process, sources had told PTI earlier that the auction was unlikely be held this fiscal due to delay in recommendations over spectrum sale by the regulator.
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Clarifying its position over delay in launch of consultation paper, and hence the auctions, Trai said the information sent by the Department of Telecom (DoT) on July 9 was not sufficient.
DoT on July 9 communicated that it was planning for auction of right to use of spectrum in 700 Mhz, 800 Mhz, 900 Mhz, 1800 Mhz, 2100 Mhz, 2300 Mhz and 2500 Mhz in the forthcoming auction, Trai said.
"DoT provided certain information through their letter dated October 16. This information in also not complete. Therefore, another letter was sent to DoT on November 16... however, to save time, the Authority has decided to issue the consultation paper based on available information," Trai said.
Regarding 800 Mhz band, DoT proposes to auction 37.5 MHz
out of total 76.25 MHz available spectrum.
Trai is seeking comments if the entire spectrum available with DoT in the 800 MHz band be put on auction and how can the spectrum, which is not proposed to be auctioned due to non-availability of inter-operator guard band, be utilised.
MTNL holds 6.2 Mhz spectrum in 900 Mhz band and 2.2 Mhz in 1800 MHz each in Delhi and Mumbai circles. Its licence expires on October 2017. But DoT has informed that decision on not putting these spectrum chunks allotted to MTNL in auction is under consideration and therefore it has been excluded from the spectrum availability.
As there is no other licence having spectrum in 900 MHz band expiring during 2016-18, only unsold spectrum in 2015 auctions would be available with DoT for sale.
In 2100 Mhz band, a total of 345 Mhz spectrum is available for auction of which 15 MHz was left unsold in the previous auction while 330 MHz will become available due to vacation by the Defence.
In 2300 MHz band, DoT has intimated about availability of one more block of 20 MHz in 16 service areas whereas in 2500 Mhz band, 600 Mhz is available.
The regulator has sought stakeholders comments on issues like quantum of spectrum to be auctioned, spectrum block size, spectrum cap, roll-out obligations and methods to be used for valuation and estimation of reserve price of spectrum.
Trai has sought comments if a separate spectrum cap
exclusively for the spectrum in 700 MHz band need to be specified.
It also asked if a cap on the spectrum holding within all bands in sub-1 GHz frequencies be specified and in such a case, should the existing provision of band specific cap (50 per cent of total spectrum assigned in a band) be done away with.
Regarding the reserve price, Trai asked if the prices revealed in the March 2015 auction for 800/900/1800/2100 MHz spectrum be taken as the value of spectrum in the respective band for the forthcoming auction.
The regulator said DoT referred to its earlier reference dated October 16, 2014 and requested it to expedite the recommendations on applicable reserve price 2300 Mhz and 2500 Mhz bands for all service areas.
"Further, DoT vide its letter dated November 6, 2015, has sought the recommendations of the Authority on liberalisation of administratively alloted spectrum in 900 Mhz band," Trai said.