The Government has informed DoT about its intention to go ahead with the Pricing of Spectrum as evaluated by Group of Minister i.e Rs 14,000 Crore as base price for 5 MHz all India spectrum in the 1800 MHz band which will be liberalized and can be used for Voice or Data or Both without any restriction.
All India 800 MHz Spectrum is priced at a whopping Rs 18,200 Crore for 5 MHz.
This is far more than the realistic metrics of the performance of the Indian Telecom Industry measured by the Adjusted Gross Revenue AGR / MHz which yields to Rs 6680 Cr for 5 MHz spectrum on all India basis.
Recall that 3G Spectrum on all India basis for 5 MHz after the auction would have cost Rs 16,800 Cr, thus taking the current auction to the same levels as that of 3G.
The Government has put the industry into further mess, especially new operators who have no choice but to exit or merge with another operator but once again the Government has no clear guidelines on the M&A.
Revised Timelines of Spectrum Auction is under
Auctions to begin on 12th November 2012 – The Department of Telecom (DoT) in consultation with the appointed auctioneer, Times Internet Limited (TIL) have decided that the 2G auction should begin on 12th November, 2012.
Auction to last 82 days, with 30th January, 2013 as the auction completion timeline – The auction is expected to last 82 days, with spectrum allotments commencing from 30th Jan, 2013
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