The telecom regulator has suggested simultaneous ascending e-auction method, starting with the online auction of the lowest band, for allocation of broadband and wireless access spectrum.
The Telecom Regulatory Authority of India has also increased the reserve price and performance bank guarantee for 15 MHz of 3G and BWA spectrum.
Releasing its recommendations for BWA spectrum allocation on Friday, Trai has suggested that the auction should be done in blocks of 5 MHz each and any bidder can bid for one or two or three blocks. A company can bid up to a maximum to 15 Mhz in block of 5 Mhz.
The bidder has to specify before the auction, the number of blocks he desires to bid for. After the conclusion of the auction process, the highest bid obtained for 5 Mhz block shall be declared and all successful bidders shall have to match the highest bid, it said.
Trai has also reiterated its earlier recommendation of charging an additional step-up annual spectrum fee of 1 per cent of total adjusted gross revenues for BWA services.
According to industry sources, this is the first time Trai has suggested for e-auction, which would be convenient for all participants.
The regulator has also increased the reserve price and performance bank guarantee for 15 Mhz spectrum in bands of 2.3-2.4 Ghz, 2.5-2.69 Ghz and 3.3-3.4 Ghz spectrum. The reserve price would be at Rs 60 crore (Rs 600 million) for metro and category 'A', Rs 30 crore for 'B' and Rs 10 crore for 'C' circles.
Trai has released recommendations on for 2.3-2.4 GHz, 2.5-2.69 GHz bands, and 3.3-3.6 GHz bands. Earlier in September 2006, the regulator had given its recommendations for 3G and BWA, but at that time 2.3-2.4 GHz and 2.5-2.69 GHz bands were not available for allocation.
Trai had withheld its recommendations on these frequencies earlier.
The existing service providers in the band 3.3-3.4 GHz shall also have to pay the same price as will be charged from the new entrants.
For the circles where no spectrum is available due to all spectrum already assigned, the service providers of that service area shall have to pay the highest bid price obtained in the other service areas of that category.
For allocation of spectrum in 2.5-2.69 GHz band, Trai has sought assistance from the Department of Telecommunications to coordinate with the Department of Space to ascertain the availability of spectrum.
The regulator has suggested this should be done in a time-bound manner of 45 days.