Lok Sabha Question No. 2583 (UNSTARRED), answered on 2019-12-04
Subject: Auction of 5G Spectrum
Ministry: COMMUNICATIONS
Asked by: Lavu Sri Krishna Devarayalu

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF TELECOMMUNICATIONS

## LOK  SABHA UNSTARRED QUESTION NO. 2583 TO BE ANSWERED ON 4 TH   DECEMBER, 2019

## AUCTION OF 5G SPECTRUM

## 2583. SHRI LAVU SRI KRISHNA DEVARAYALU:

Will the Minister of COMMUNICATIONS be pleased to state:

- (a) whether  the  Government  proposes  to  auction  5G  spectrum  very  soon  and  if  so,  the  details thereof;
- (b) whether any assessment has been made by the Government as to how much 5G spectrum is required and is available and if so, the details and the outcome thereof;
- (c) the amount likely to be released by the Government from the said auction;
- (d) the efforts made by the Government to transparently auction the said spectrum;
- (e) the reserve price fixed by the Government for the said spectrum sale; and
- (f) whether the telecom companies which are reportedly under severe financial stress will be able to buy the 5G spectrum and if so, the details thereof and the reaction of the Government thereto?

## ANSWER

## MINISTER OF COMMUNICATIONS, LAW & JUSTICE AND ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI RAVI SHANKAR PRASAD)

- (a) Telecom Regulatory Authority of India (TRAI) has given its recommendations dated 1.8.2018 on Auction  of  Spectrum  in  various  bands  including  for  5G  services.  The  Government  will  decide  on  the auction of spectrum, after considering the recommendations of TRAI.
- (b) TRAI  has  recommended  that  barring  the  specific  locations  or  districts  where  Indian  Space Research  Organization(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.TRAI  has  also  recommended  that  in  3300-3600  MHz  band,  there should be a spectrum holding cap of 100 MHz per licensee. TRAI recommendations are being examined by the Government.

- (c) The valuation of the spectrum recommended for auction by TRAI in 3300-3600 MHz band is Rs. 1,35,300/- crores. The actual amount realised will depend on the final bids by the bidders in the auction.
- (d) The efforts of the Government to transparently auction the said spectrum are as follows:
1. The  details  of  auction  are  transparently  placed  in  public  domain  through  a  'Notice  Inviting Application'  (NIA)  which  includes  inter  alia,  the  rules  of  auction  process,  timelines,  details  of spectrum being auctioned, eligibility criteria, procedure for awarding spectrum.
2. The process is open to all potential bidders on a non-discriminatory basis.
3. The process allows for queries to be raised by potential bidders, and such concerns are addressed through a 'Queries and Responses' document which is also placed on Department of Telecommunications (DoT's) website.
4. The auctioneer is selected through a transparent Request for Proposal (RFP) process.
5. The  auction  is  conducted  online  through  an  Electronic  Auction  System  (EAS)  for  which  prior security audit by Standardisation Testing and Quality Certification (STQC) is mandatory.
6. The EAS has to be compliant with Guidelines for Indian Government Websites (GIGW).
7. Back up of all the auction data including bids received in each round is done in real time and is available for subsequent analysis and audit.
8. Prior to the start of the auction, the Government makes public the list of pre-qualified bidders as well as the information about their ownership structures.
9. At the end of each day of the auction, details of clock rounds completed, aggregate demand and provisional bidding price are put up on DoT's website.
- (e) Reserve price will be fixed after considering TRAI's recommendations.

(f) In its recommendations on auction of spectrum dated 1.8.2018, TRAI has stated that  to keep pace with the increasing demand of data services, it is essential that spectrum is auctioned at regular intervals. TRAI has also brought out that it would not be entirely correct to say that industry is not in a position to assess  its  spectrum  requirements,and  has  recommended  that  entire  available  spectrum  should  be  put  to auction  in  the  forthcoming  auction.  The  recommendations  of  TRAI  are  under  consideration  of  the Government.

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