Spectrum auction: Telecom EGoM to meet on Monday

New Delhi: A high powered ministerial panel, headed by Finance Minister P Chidambaram, is likely to finalise the schedule for second round of spectrum auction when it meets tomorrow.

The Empowered Group of Ministers (EGoM) on telecom is also likely to discuss spectrum sale in 800 MHz band which is used for offering CDMA services.

Sources said the high-powered panel in its last meeting on January 3, deliberated on the spectrum sale in 1800/900 MHz bands but did not finalised a date for the start of auction process.[caption id="attachment_579159" align="alignleft" width="380"] Spectrum discourse. PTI[/caption]

The EGoM deliberated on the design of auction, quantum of spectrum, services area where GSM spectrum in 1800 and 900 MHz spectrum will be auctioned but could not discuss measures for CDMA (800 MHz) spectrum which had not attracted any bidders in the November, 2012 auction.

"The auction will take place during this fiscal but it does not seem possible by 18 January," a source said.

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Sources, however, added that auction is likely to start from 11 March for unsold spectrum in 1800 Mhz and airwaves in 900 Mhz band held by telecom companies whose licences are coming up for renewal in 2014.

Telecom companies, whose licences have been cancelled by the Supreme Court order, are allowed to continue their services after 18 January 2013 only if they have won spectrum in the recent auction.

As per the apex court order, 21 licences of Sistema Shyam Teleservices (MTS), 16 permits of Telenor controlled Uninor, 15 of Videocon and 3 CDMA permits of Tata Teleservices will stand cancelled from 18 January.

Telenor is in the process of transferring the business of Uninor in six circles under new entity Telewings Communications, which recently won spectrum.

The government is learnt to be preparing fresh plans to auction the radiowaves that can fetch around Rs 39,895 crore.

As per the proposal, the government could get around Rs 25,316 crore from the auction in the premium 900 Mhz band, and Rs 14,579 crore from auction of unsold spectrum in the 1800 Mhz band.

PTI