The inter-ministerial committee (IMC) for spectrum auctions has recommended that the auctioneer be paid only for conducting a successful auction in a particular service area. The committee is of the view that the government should not pay the fixed fee of Rs 50 million to the company conducting auctions. Instead, the percentage of the difference between the reserve price and spectrum winning price should be paid to them after successful completion of spectrum sale. IMC believes that variable fee payment clause will motivate auctioneer to design the auction in a manner that ensures good market price for spectrum.
The recommendations have come as the Department of Telecommunications (DoT) is looking at various models to appoint an agency that will design software and operate the spectrum auction to be held in February 2015. For the auction process, DoT will select the auctioneer through a tender process.
Earlier in 2010, the 3G and broadband wireless access spectrum auctions were conducted by N M Rothschild & Sons. The government had selected Times Internet Limited consortium for the auctions held in 2012.
