• Spectrum in the 2.5 GHz band will be allocated for BWA services.
  • The government has allowed existing UAS licence holders and Category A and B ISPs to bid for BWA spectrum.
  • Spectrum will be auctioned in the 2.5 GHz and 2.3 GHz bands for data services and will be on a telecom service area (state) basis. Successful bidders would be eligible for 20 MHz of spectrum in a service area. Two blocks each in the 2.3 GHz and 2.5 GHz bands will be auctioned. In the 700 MHz and 3.3-3.6 GHz bands, spectrum will be auctioned as and when available.
  • The reserve price per MHz will be 25 per cent of the 3G reserve price.
  • BWA spectrum will be granted through a controlled, simultaneous ascending e-auction, by a specialised agency to ensure transparency in the selection process.
  • Successful bidders will have to deposit 25 per cent of the bid amount as bid deposit within five days of close of the auction and the entire amount within 15 calendar days of the bid, or forfeit the earnest money, which will be 25 per cent of the reserve price in the form of bank guarantees.
  • In case of a tie between a UAS licence holder and an ISP, preference will be given to the UAS licensee. If there is a tie between two UAS licensees or two ISPs, preference will be given to the bidder with the higher subscriber base. Spectrum for BWA services will be allotted for a period of 15 years.
  • One block will be allocated to MTNL in Delhi and Mumbai, and one to BSNL in the other service areas at a price equal to the highest bid in the respective service area.
  • BWA licensees are required to cover 25 per cent of rural SDCAs in Category A, B and C circles within a period of two years from the date of BWA spectrum allocation, and 90 per cent of the metros and 50 per cent of rural SDCAs within five years of getting BWA spectrum. The performance bank guarantees would be encashed if the BWA licensees fail to achieve the two-year rollout obligations. The spectrum will be withdrawn if the five-year rollout obligations are not met.
  • There will be no spectrum charge for BWA services in the first year of operations. Operators will be required to pay an annual spectrum charge of 1 per cent of their annual gross revenue after the moratorium ends.