With Spectrum Auction, Other Telecom Reforms Likely to be Delayed

With Spectrum Auction, Other Telecom Reforms Likely to be Delayed

The postponement of the spectrum auction has caused delays in other initiatives within the telecom ministry, such as implementing regulations for the Telecommunication Act 2023 and other telecom reforms. 

Officials from the Department of Telecommunications (DoT) stated that the auction was deferred due to internal uncertainties within the government. Consequently, no decisions will be made until the situation is clarified. The DoT had several reforms in the pipeline, including measures to curb unsolicited calls and developing regulations for the Telecommunication Bill. 

“We don’t want to conduct the spectrum auction until a new government is formed,” an official explained. “Initially, we considered a 10-day deferral, but without a clear timeframe for government formation, we’ve extended the delay to 20 days. This will impact not only the spectrum auction but also other telecom-related activities,” the official added. 

The spectrum auction has been rescheduled for June 25, marking its second postponement, with the previous delay due to the election model code of conduct. The government plans to auction eight spectrum bands for cellular services, with a base price of approximately Rs 96,317 crore. 

The available spectrum includes bands in the 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz, 2,300 MHz, 2,500 MHz, 3,300 MHz, and 26 GHz ranges. Reliance Jio has deposited the highest earnest money of R3,000 crore for the auction, allowing them to bid for the maximum amount of radio waves. 

Analyst reports indicate that Airtel may be the biggest spender in the 2024 spectrum auction, with an estimated outlay of Rs 10,400 crore. Details released by the DoT show that Bharti Airtel submitted an earnest money deposit (EMD) of Rs 1,050 crore, while Vodafone Idea deposited Rs 300 crore. 

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