The Department of Telecommunications (DoT) has postponed the spectrum auction from January 23, 2014 to February 3, 2014 as operators have sought clarity on a number of issues including spectrum usage charges (SUC) ahead of the spectrum auction.
As per the new timeline issued by DoT, the clarifications to the Notice Inviting Applications will be issued on January 2, 2014 and the auction would start from February 3, 2014. Last date for the submission of application by the operators is January 15, 2014. DoT will announce the pre-qualification of bidders by January 25, 2014. Bidders will be given an option to withdraw their applications according to the changes in the auction schedule. Service providers had objected to DoT?s move to remove the option of withdrawing their bids, as was allowed in the last auctions. Operators will now be allowed to withdraw their bids by January 27, 2014 and the final list of bidders will be announced on January 29, 2014. A mock auction will be conducted over January 30 and 31, 2014.
According to DoT, service providers have sought clarity on SUC rates along with other issues such availability of contiguous spectrum etc. The Telecom Commission, and an inter-ministerial panel, is scheduled to meet on December 31, 2013 to discuss the issues raised by the operators.
Majority of the operators are pushing for lower SUC rates as recommended by the Telecom Regulatory Authority of India, while a section of players have opposed it. Currently, the government levies SUC of three to eight per cent of revenue earned by the operators, depending on the quantum of spectrum held by them. Earlier, TRAI had suggested that the operators should be asked to pay a flat SUC of three per cent of their total revenues if the players have obtained spectrum by participating in a spectrum auction. However, those operators who have received spectrum by paying price set by the government should be charged a flat SUC of five per cent.
The government has set a total revenue target of Rs 408.74 billion from spectrum auction, including auction amount, one-time spectrum fee and the annual licencing fee in 2014.
