Indian telecom service providers have requested the government to consider an auction of spectrum in the fourth-generation band of 700 MHz after a period of two years. This will allow the operators to prepare for the auction and the ecosystem to mature. While spectrum in the 700 MHz band is important for rolling out high-speed mobile broadband services and help operators offer mobile connectivity in rural areas and semi-urban peripheries, operators expect its cost to be very high. Given that most operators already face huge debt burdens, an auction now would put further strain on the balance sheet of operators.
The Telecom Regulatory Authority of India had earlier suggested that the frequencies in the range of 698-806 MHz, commonly referred as the 700 MHz band, should be auctioned as most of them were lying vacant and had given 2014-15 as auction timeline expecting the long term evolution (LTE) ecosystem to be developed by then.
However, the Cellular Operators Association of India is of the view that ecosystem for the band is not yet ready and has called for a roadmap on the auction of the band as the availability of the band is currently not known.
