Lok Sabha Question No. 2790 (UNSTARRED), answered on 2017-08-02
Subject: Fresh Auction of Spectrum
Ministry: COMMUNICATIONS
Asked by: A. ARUNMOZHITHEVAN

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF TELECOMMUNICATIONS

## LOK SABHA UNSTARRED QUESTION NO.2790 TO BE ANSWERED ON 2 ND   AUGUST, 2017

## FRESH AUCTION OF SPECTRUM

2790. SHRI A. ARUNMOZHITHEVAN:

Will the Minister of COMMUNICATIONS be pleased to state:

- (a) whether  the  Government  proposes  to  auction  5G  spectrum  in  the  upcoming round  of  spectrum  auction  and  if  so,  the  details  thereof  including  the  estimated amount likely to be realized therein and if not, the reasons therefor;
- (b) the  steps  taken  by  the  Government  to  provide  adequate  support  to  all  the participants of the said auction and maintain a level playing field for all;
- (c) whether no player evinced interest in the auction of 700 Megahertz band and if so,  the  details  thereof  and  the  reasons  therefor  including  the  complaints  registered from the telecom companies with regard to the auction price; and
- (d) whether the Government has proposed to perform a fresh round of auction in the said band and if so, the details thereof and if not, the reasons therefor?

## ANSWER

## THE MINISTER OF STATE (IC) OF THE MINISTRY OF COMMUNICATIONS & MINISTER OF STATE IN THE MINISTRY OF RAILWAYS (SHRI MANOJ SINHA)

- (a) Auction of spectrum is a continuous process.   The Government has made a reference to Telecom Regulatory Authority of India (TRAI) for providing recommendations  for  auction  of  spectrum  in  various  frequency  bands  for  the upcoming round of auction. Recommendations from TRAI is awaited.

It  is  further  added  that  the  Government auctions spectrum without specifying any technology, subject to the condition that the technology deployed by the TSP is the  one  approved  by  international  organization  like  ITU  or  by  the  Department  of Telecom (DoT). It is for TSPs to deploy the technology within the spectrum acquired by them which best serves market demands.

- (b) The Government had ensured level playing fields to all the participants in the spectrum  auction  held  so  far  and  would  remain  committed  to  do  so  in  the  future auctions also.
- (c) Based  on  the  TRAI  recommendations  'Valuation  and  Reserve  Price  of Spectrum in 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz and 2500 MHz Bands' dated 27.1.2016, a total of 35+35 MHz spectrum in the block size of  5+5  MHz  in  700  MHz  band  was  put  to  auction  in  all  the  22  Licensed  Service Areas(LSAs) in the spectrum auction held in October 2016. No bid was received in any of the 22 LSAs in 700 MHz.  Representations of some of the TSPs such as M/s Vodafone  India  Limited,  and  COAI  were  received  in  the  Department  of  Telecom regarding higher Reserve Price for 700 MHz band. Expensive ecosystem in 700 MHz band together with industry perception of high reserve price appears to be the main reason  for  no  bids  in  the  700  MHz  band.    In  addition,  companies  appeared  to  be preserving cash to protect market share in the days to come.
- (d) 700 MHz band has also been included in the above reference, which has been sent to TRAI.

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