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http://content.icicidirect.com/mailimages/ICICIdirect_TelecomSector_EventUpdate.pdf
C o n s u l t a t i o n p a p e r o n 2 G s p e c t r u m a u c t i o n …
The recent ruling of the Supreme Court on cancellation of 122 licenses,
which were awarded on or after January 2008, has set an important task
for Trai – to decide the nature of the auction of spectrum of cancelled
licensee as well as spectrum already available with the government. As a
response, Trai came out with a consultation paper requesting comments
from all stakeholders on some major issues in the 2G spectrum auction.
Some of the major issues that were to be discussed are:
1. Quantum of spectrum to be allocated
The key issues to be considered here are regarding the amount of
spectrum that should be auctioned, the block size of the spectrum,
number of blocks and cap on the amount of spectrum that one licensee
can acquire through this auction and also the overall cap on the quantum
of the spectrum one can possess.
2. Road ahead for spectrum refarming
The key issue to be discussed here is refarming of spectrum in the
precious 900 MHz band, which is currently being used for cellular
services, to the 1800 MHz band to free up spectrum in 900 MHz in view of
its value for providing 3G services and for future technologies. The time
period for spectrum refarming — whether immediately or at the time of
license renewal is also seen as an issue.
3. Reserve price for auction
The key issue here is setting the most important parameter of the auction
– reserve price. A reserve price has to be set in accordance with the
demand in the industry. If a reserve price is too high there may not be
many takers for the spectrum, whereas a low reserve price may lead to
lower realisations to the government. Different methods for setting the
reserve price exist each of which come up with a different value for the
reserve price.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
http://content.icicidirect.com/mailimages/ICICIdirect_TelecomSector_EventUpdate.pdf
C o n s u l t a t i o n p a p e r o n 2 G s p e c t r u m a u c t i o n …
The recent ruling of the Supreme Court on cancellation of 122 licenses,
which were awarded on or after January 2008, has set an important task
for Trai – to decide the nature of the auction of spectrum of cancelled
licensee as well as spectrum already available with the government. As a
response, Trai came out with a consultation paper requesting comments
from all stakeholders on some major issues in the 2G spectrum auction.
Some of the major issues that were to be discussed are:
1. Quantum of spectrum to be allocated
The key issues to be considered here are regarding the amount of
spectrum that should be auctioned, the block size of the spectrum,
number of blocks and cap on the amount of spectrum that one licensee
can acquire through this auction and also the overall cap on the quantum
of the spectrum one can possess.
2. Road ahead for spectrum refarming
The key issue to be discussed here is refarming of spectrum in the
precious 900 MHz band, which is currently being used for cellular
services, to the 1800 MHz band to free up spectrum in 900 MHz in view of
its value for providing 3G services and for future technologies. The time
period for spectrum refarming — whether immediately or at the time of
license renewal is also seen as an issue.
3. Reserve price for auction
The key issue here is setting the most important parameter of the auction
– reserve price. A reserve price has to be set in accordance with the
demand in the industry. If a reserve price is too high there may not be
many takers for the spectrum, whereas a low reserve price may lead to
lower realisations to the government. Different methods for setting the
reserve price exist each of which come up with a different value for the
reserve price.
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